Price controls
From The Art and Popular Culture Encyclopedia
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Price controls are restrictions, usually set in place and enforced by governments, on the prices that can be charged for goods and services in a market. The intent behind implementing such controls can stem from the desire to maintain affordability of goods even during shortages, and to slow inflation, or, alternatively, to ensure a minimum income for providers of certain goods or to try to achieve a living wage. There are two primary forms of price control, a price ceiling, the maximum price that can be charged, and a price floor, the minimum price that can be charged. A well-known example of a price ceiling is rent control, which limits the increases in rent. A widely-used price floor is minimum wage (wages are the price of labor). Historically, price controls have often been imposed as part of a larger incomes policy package also employing wage controls and other regulatory elements.
See also
- Administered prices
- Capital control
- Monopsony
- Incomes policy
- Rent regulation
- Council on Wage and Price Stability
- Shortages in Venezuela
