What is the role of price controls in the market economy

Question

Quizplus · Accepted Answer

Price controls are used by governments to regulate markets and reallocate resources in a more equitable manner. This can help address issues of income inequality and ensure that basic goods and services are available to all members of society, regardless of their ability to pay. However, price controls can also create unintended consequences such as shortages, black markets, and reduced incentives for producers to supply goods and services.

What Is the Role of Price Controls in the Market