Mayo Gas Info

In 1981, when regulations were holding the price of natural gas below its free-market level, then-Congressman Jack Kemp of New York said the following in an interview with the New York Times: "We need to decontrol natural gas, and get production of natural gas up to a higher level so we can bring down the price." Evaluate the congressman’s statement.

My interpretation is: Removing a price ceiling usually results in the price of natural gas rising or falling to equilibrium.

What do you think this means? Do you think my answer is incorrect?

I think he meant if natural gas regulations were removed production would increase due to more expectation of profit from industry players.

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