/sci/ - Science & Math

>>9351789
But if we are to put such a ceiling on a business where no product alternatives are available within their department and where the business cannot relocate, would my scenario still be valid?

Suppose that the US government put a price ceiling on what local oil extractors sold their crude oil at, locally or abroad, in a past decade where other energies were not feasible. Other forms of extraction are not viable for them because they cannot conveniently exchange all their capital for capital for extracting a substitute, such as coal, equitably. Then oil extractors would just drill more oil to meet the newer quantity demanded? Would a disinterest of investors in this less profitable industry LIKELY cause a collapse of the extractive industry? Is a balance of price reduction and investor interest possible so that this price ceiling increases the supply in a persistent manner?