![FIGURE 8.5](cowentabarrokecon3e_ch8_fig_5.jpg)
When Prices Are Controlled, Resources Do Not Flow to Their Highest-Valued Uses Gains from trades are maximized when goods flow to their highest-valued uses. A price control prevents the highest-valued uses from outbidding lower-valued uses so some oil flows to lower-valued uses, even though it would be more valuable if used elsewhere.