Why governments control prices
Why governments control prices
A price control is a legally imposed maximum or minimum price. A binding price control prevents the market price from settling at its free-market equilibrium, while a non-binding price control leaves the equilibrium price unchanged. Governments intervene when they judge the equilibrium price to be too high for consumers or too low for producers.
Step-by-step lessons on CIE Intl A Level Economics 3.1.3 controlling prices in markets. Each one builds up to exam-style questions.