A classic example of how price controls cause shortages was during the Arab oil embargo between October 19 , 1973 and March 17 , 1974 . Long lines of cars and trucks quickly appeared at retail gas stations in the U.S. and some stations closed because of a shortage of fuel at the low price set by the U.S. Cost of Living Council .
The Arab oil embargo between October 19 , 1973 and March 17 , 1974 is another example on how price controls cause shortages : Long lines of cars and trucks quickly appeared at retail gas stations in the U.S. and some stations closed because of a shortage of fuel at the low price set by the U.S. Cost of Living Council .