💰Price controls, such as minimum wage and rent control, can impact the equilibrium between supply and demand in markets.
⬆️⬇️Price floors, like minimum wage, set a higher price than equilibrium, creating a surplus of workers.
⬇️⬆️Price ceilings, like rent control, set a maximum price below equilibrium, causing a shortage of goods or services.
🔒Price controls are implemented for policy and social reasons, not to address market failures.
⚖️Price controls can result in deadweight loss, which is the efficiency loss caused by using resources inefficiently.