Advanced Placement Microeconomics analyzing individual economic decision-making.
Sometimes, governments step in and set maximum or minimum prices for goods and services. These are called price controls.
Price controls can cause shortages (not enough to go around) or surpluses (too much left over). For example, if rent is capped too low, landlords might not want to rent out apartments, leading to a housing shortage.
Governments use price controls to help certain groups, but they can have unintended side effects.
Price controls can affect what you pay for gas, your paycheck, and the availability of things you need.
When the government sets a minimum wage above the market rate, some workers may earn more, but others may lose their jobs due to higher labor costs.
Rent control can help tenants afford housing, but may lead to fewer apartments available for rent.