Respond to the following in a minimum of 175 words:How do price controls affect the market? Provide...

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Respond to the following in a minimum of 175 words:

How do price controls affect the market? Provide a real-world example that takes consumer surplus and producer surplus into consideration.

Please Note****** Please simply answer the word count and answer the question provided. I do not need any sources as this is only a weekly discussion topic for participation.

Sumita Mitra · Accepted Answer

2
Price Control and its effect in the market:
Price control is the scenario when the government sets the minimum and the maximum price for a good. This is done to regulate the economy and the buying power of people and can be binding and non-binding. This is a regulatory tool used by the government to maintain availability of stable foods and prevent inflation of prices during shortages. Price controls in a market generally distort the working of the market dynamics and creates either shortage or oversupply of goods.

Respond to the following in a minimum of 175 words: How do price controls affect the market? Provide a real-world example that takes consumer surplus and producer surplus into consideration. Please...

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