price controls


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Price Control

A government regulation limiting the percentage (or, rarely, dollar amount) by which a price for a good or service can change over a given period of time. Price controls have been used to combat inflation, though they are rarely successful. Price controls may also be utilized to protect a favored industry, and are used most commonly to provide a minimum price for agricultural products. See also: Wage control, Price ceiling, Price floor.

price controls

the specification by the government of minimum and/or maximum PRICES for goods and services. The price may be fixed at a level below the market EQUILIBRIUM PRICE or above it, depending on the objective in mind. In the former case, for example, the government may wish to keep the price of some essential good (for example, food) down as a means of assisting poor consumers. In the latter case, the aim may be to ensure that producers receive an adequate return (see PRICE SUPPORT). More generally, price controls may be applied across a wide range of goods and services as part of a PRICES AND INCOMES POLICY aimed at combating INFLATION. See also RATIONING.
References in periodicals archive ?
Tougher requirements to put network companies business plans for the next price controls under the microscope.
Ofwat published its new methodology for the forthcoming 2019 price control review (PR19) on 13 December 2017.
I'm surprised to see that Cambio Democratico [Martinelli's party] is attacking me for this when the president openly stated during his campaign that emergency price controls were the only solution to rising food prices," said Varela.
For example, although there is a strong lobby in US against price control, studies have shown that a US consumer pays an average of 20 per cent more than their Canadian counterpart.
Representatives of the industry have expressed serious concerns about medical device price controls proposed by the NDRC," Luger wrote in a letter to Yesui.
Following the price control scheme, the latest hit on UAE retailers comes in the form of instructions from the Ministry of Economy to stop charging commission on credit card usage, effective July 1 this year.
Equally, price controls can lead to the supply of poor or poorer quality products as suppliers and profiteer-ers seek to create a larger profit margin by buying cheaper costing products.
The price controls required the four banks - Barclays, HSBC, Lloyds TSB and the Royal Bank of Scotland Group - to make available to small and medium enterprises an account which offers an interest rate of at least 2.
He added: "The evidence since our inquiry in 2003 is that, even though the four largest banks continue to hold a large market share and switching levels, whilst improved, are still relatively low, the other banks not covered by the price controls have competed more strongly for SME customers and improved their market position.
If Americans were reminded of the truth that price controls over pharmaceutical drugs will lead to less medical innovation and fewer choices, the poll would likely be skewed rather differently.
That aside, what the chart alarmingly shows is that in spite of the government's prodigious efforts at trying to make price controls work, the effort has failed.
Proposals to deregulate retail price controls on telecomms company BT's line rental and calls are to be published by Ofcom, the independent regulator and competition authority for the UK communications industries.