Question

Based on the Application “Venezuela Price Ceilings and Shortages,” use two figures to show the effects of Venezuela’s price control on corn flour in Venezuela and in Colombia’s corn flour markets.

Answer 1

Shortages in Venezuala was applied for food items and necessities. Its continuation was the control charged in the prices. It was the ever-biggest refugee crisis in America.

Maduro Diet was an important event while telling about Venezuala shortages.

• Maduro Diet

Venezuala people and children suffered malnutrition because of their hunger as there is not enough food. They were starving due to the same and the then President Maduro rejected and ignore these diet issues of the people in the country. This weight loss was called by them Maduro diet. By 2016, around 3 quarters of people lose their weight due to intense starvation. It was found that those people intake even garbage and wild fruits to prevent hunger. Even they had to dispose some of their personal things for food. It was a forceful diet. It was condemned by the people of Venezuala. The President insulted the people's body structure due to starvation. This was a worse situation during Venezula shortages.

An incident was occurred that time in connection with the corn flour market. A business man agreed to pay $52 million for a corn consignment import. It was $20 million higher than the normal and actual market price. For importing the goods, he should spent the extra money to the military officials. And for years, he was paying that much extra amount to the military officials as well as the health minister. Then, the situation was the government was trying to make profit out of the crisis of people instead of helping them. In the name of saving people, they were getting benefited themselves. These military officials themselves rise the product costs and form a shortage by way of hoarding the goods. Importing ships of corn will be withheld at the ports until extra amount is paid to these officials.