Price Regulation
Government control of prices; typically maximum/minimum.
Real World
Ofgem sets a price cap on domestic energy bills in the UK — when wholesale costs surged in 2022, millions of households were partially shielded from the full market price rise.
Exam Focus
Distinguish maximum price (below equilibrium, causes shortages) from minimum price (above equilibrium, causes surpluses) — examiners regularly test this distinction.
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