Introduction.
National, local and regional authorities sometimes implement and reinforce price control policies which are legal giving maximum and minimum prices of goods and services in an economy. By doing this, the government and concerned body intervene in the market directly thereby protecting consumers from being exploited. Two common methods that include price ceiling and price floor are in play. Considering the current situation of the government, there is need of immediate intervention as most entrepreneurs are aggressive and therefore maximise profits when given an opportunity (Denny 03).
Question 1:
The government should implement price control in this case because of the ...