ABSTRACT
The widespread prevalence of such administered prices and the increased role which they play in the American economy suggests the need for intensive exploration into their implication for economic functioning. In contrast to the economics of imperfect competition, the economics of administered prices is almost solely concerned with the short run insensitivity of prices to variations in economic conditions. The economic problems associated with administered prices can be grouped, at least tentatively, under two heads: the problems growing out of the immobility of price, and the problems growing out of changes or prospective changes in price. Thus a price which is known to be so fixed that it is unlikely to be changed within the period which has to be taken into account in actual operation will problems arising primarily from non-change. The government economy would introduce the problems of taxes.
