What is price control in the economy?

Price control in the economy is understood as legal or government control exercised over goods in order to establish either the minimum or maximum price for goods or services. These controls or legal requirements apply to certain items to ensure the availability of certain goods or services. Economists debate the effectiveness of price controls and cite that they often lead to scarcity, rationing, or quality degradation. One example of price control is rent control in New York, which was implemented to ensure an adequate supply of affordable housing in the area. However, lease control led to a reduction in the total supply of leased premises, which in turn led to an increase in rental prices in the available market.

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