PRICE CONTROL Meaning and
Definition
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Price control refers to the government's action of regulating and managing the prices of goods and services in order to stabilize or influence the economy. It aims to maintain affordable prices for consumers, prevent inflation, and promote fairness in the market. Price control can take various forms, such as price ceilings and price floors.
A price ceiling is the maximum price set by the government, which restricts producers and sellers from charging higher prices for certain goods or services. This measure is typically used to protect consumers from being exploited by monopolies or during times of crisis. It ensures that essential items like food, housing, or healthcare remain affordable to all citizens.
On the other hand, a price floor is the minimum price established by the government, determining the lowest amount at which a certain product or service can be sold. Price floors are often implemented to support producers, particularly in agriculture, by guaranteeing them a minimum income and preventing prices from falling too low.
Price controls are typically enacted during times of economic instability, shortages, or during emergencies to prevent exploitation or disruptions in the market. However, they can also lead to unintended consequences such as black markets, reduced availability of goods and services, and potential distortions in the economy due to interference in the natural supply and demand dynamics.
Overall, price control refers to the government's intervention in the market to regulate pricing, with the objective of achieving economic stability, fairness, and affordability for consumers.
Common Misspellings for PRICE CONTROL
- orice control
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Etymology of PRICE CONTROL
The word "price control" combines two separate terms: "price" and "control".
The term "price" has its origins in the Old French word "pris", which means "price, value, or worth". It further traces back to the Latin word "pretium", meaning "price, value, worth, or reward".
The word "control" comes from the late Middle English word "controulen", which originates from the Old French term "contrerouler", with "contre" meaning "against" and "rouler" meaning "roll, list, or register".
Therefore, when the two terms are combined, "price control" refers to the act of regulating or managing the cost or value of a particular commodity or service.
Similar spelling words for PRICE CONTROL
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