Why do government leaders impose price controls?
A) They are trying to promote the formation of black markets.
B) They are trying to ensure that the market reaches equilibrium.
C) They are trying to ensure that all consumers are able to purchase a specific product.
D) They are trying to ensure that a social goal is satisfied.
E) They are trying to increase the demand curve.

Question

Quizplus · Accepted Answer

Government leaders impose price controls to ensure that a social goal is satisfied. This can include making goods and services more affordable for low-income individuals or protecting consumers from price gouging during a crisis. However, price controls can also lead to unintended consequences such as shortages and black markets.

Why Do Government Leaders Impose Price Controls