The government may set a maximum , below the price, which then prevents producers from raising the price above it. This is sometimes known as the price.
prices are usually set to protect consumers and they are normally imposed in markets where the product in question is a necessity and/or a merit good. For example, governments may set maximum prices in agricultural and food markets during times of food shortages to ensure low-cost food for the poor or they may set maximum prices on rented accommodation to attempt to get affordable accommodation for those on low incomes. Maximum prices will, however, lead to demand.
The may set a price, above the equilibrium price, which then prevents producers from reducing the price below it. This is sometimes known as the price.
Minimum prices are mostly set for one of two reasons: either to attempt to raise incomes for producers of goods and services that the government thinks are important, such as agricultural products; or to protect workers by setting a minimum , to ensure that workers earn enough to lead a reasonable existence. Minimum prices will, however, lead to excess .