- Price controls are government-set minimum or maximum prices for certain goods and services.
- Price controls are exercised to control the availability of goods and services on the market.
- The minimum values are called price lows, and the maximum values are called price ceilings.
- These controls are only effective on a very short term basis.
- In the long run, price controls can lead to problems such as shortages, rationing, poor product quality and illicit markets.