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Price controls on rents are frequently implemented by governments in an effort to protect renters from high housing prices. Differentiate the type of price control used from other potential price controls, and then formulate reasons as to why governments should be careful when implementing these types of controls.

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The price ceilings and price floors are the two main types of price controls.

What is price controls?

A price control is a mechanism employed by government to ensure that the price of a product or service does not go to high or low in the marjet.

The two type of price control is price ceilings and price floors. The price ceiling is used to set a maximum amount of product rpice while the price floors set the minimum amount of product price.

Read more about price control

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