Price control

Price control refers to government regulations that set limits on how high or low prices for goods and services can be. These controls aim to protect consumers from excessively high prices (price ceilings) or prevent prices from falling too low (price floors), which could harm producers. For example, a cap on rent prices helps keep housing affordable, while minimum wages establish the lowest acceptable pay. Price controls can stabilize markets during crises but may also lead to shortages or surpluses if set improperly. Overall, they are tools to balance affordability, supply, and market health.