What is the “invisible hand” and why price controls don’t work.
In market economy, the more people want to buy something, the more it can be charged for. Which leads to more people investing their money into providing this something at a lower price, which means the overall prices go down until they reach an equilibrium. The equilibrium price ends up at average cost of making this something plus some reasonable profit percentage. That is the “invisible hand”.
Of course none of it works with monopolies because there is nobody to provide more of this something at a lower price. This is why monopolistic behavior is outlawed, and monopolies are periodically broken into competing pieces.
When a government intervenes, for example limiting price in case of emergencies, it always makes things worse. If it sets price too low, which means less people can make it profitably, which means less of the thing, which means shortages. Or it sets the prices too high, which means less people can afford it — this is more likely to happen as a result of corruption rather than stupidity.
When the prices spike in case of natural disasters and resulting shortages, it is called “gouging”, but in reality it results in super-profits which in turns results in more people rushing in to provide the product and services which now get them super-profits, which results in rapid end to the shortages.
Hope this helps.