Which of the following is correct? Price controls

Question

Quizplus · Accepted Answer

Price controls, such as setting a maximum price (price ceiling) or minimum price (price floor), often lead to unintended consequences that can hurt the very people they are supposed to help. For example, a price ceiling on rent may make housing more affordable for renters, but it can also lead to a decrease in the quantity and quality of available rental units as landlords may no longer find it profitable to keep their properties in good condition. In certain situations, price controls can be effective, but they must be carefully designed and implemented to avoid negative consequences.

Which of the Following Is Correct? Price Controls