Price and quantity controls

Topic Page

Questions

• How do price controls distort incentives?
• Why are price controls necessary in select markets or industries?
• What are some reasons to have a set price floor for a good or service?
• What is a price floor?
• How does the law of diminishing marginal utility affect quantity demanded?
• How does the law of diminishing marginal utility relate to the demand curve?
• How can price ceilings be used to regulate a natural monopoly?
• When can a price ceiling be beneficial?
• What is rent control?
• Why may a municipality enact rent controls?