AP MicroeconomicsSupply & Demand
Price Control
A price control is a government-imposed limit on how high or low a price can be for a particular good or service.
Governments impose price controls, such as price ceilings or price floors, to protect consumers or producers from extreme price fluctuations. However, price controls can lead to market inefficiencies, shortages, or surpluses. Examples include rent control and minimum wage laws.
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