Price controls

A price control is a market intervention, which limited the market prices by the state directly, by prohibiting market participants to offer goods and services at certain prices. Price controls are often justified to avoid perceived as unfair market outcomes. Often the poor are to be helped with price controls. For example, to the control of rents allow affordable housing or minimum wages fight poverty. Price controls can also reach the opposite of their desired effect, such as when less living space is maintained or offered by the controlled rental rates or carry minimum wage unemployment.