The main purpose of government price controls is to keep prices at equilibrium levels.

Question

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The main purpose of government price controls is to either increase or decrease prices from their equilibrium levels in order to achieve certain social, economic or political goals, such as protecting consumers from high prices, promoting certain industries, or controlling inflation. Price controls can lead to market inefficiencies and distortions, and often result in unintended consequences such as shortages or surpluses of goods and services, reduced quality or availability, and black markets.

The Main Purpose of Government Price Controls Is to Keep