The term price controls refer to the legal minimum or maximum prices set for specified goods. Price controls are normally mandated by the government in the free market. They are usually implemented as a means of direct economic intervention to manage the affordability of certain goods and services, including rent, gasoline, and food. Although it may make certain goods and services more affordable, price controls can often lead to disruptions in the market, losses for producers, and a noticeable change in quality. Minimums are called price floors while maximums are called price ceilings. These controls are only effective on an extremely short-term basis.1 Over the long term, price controls can lead to problems such as shortages, rationing, inferior product quality, and illegal markets.2Become a supporter of this podcast: https://www.spreaker.com/podcast/investment-terms--4432332/support.

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