Price controls can cause or efficiency, shortages shortages, surpluses equilibrium prices, surpluses

price control causes shortages and surpluses depending on whether it is the maximum or minimum price control. if it is maximum, there will be surpluses and if it is minimum, there will be shortages due to how much people can afford

shortages/surpluses

Explanation:

In a competitive market economy, the price of products is determined through the interaction between supply and demand for the product. If the government decides to control prices, the competitive mechanisms that make up the price are abandoned. Thus supply and demand will depend on the price set by the government. If the price is high, supply should increase, but quantity demanded should decrease. This can cause an surpluses. There will be more products for sale than consumers to buy. Conversely, when the stipulated price is low, demand will be high, but supply will be low, as producers will not have an incentive to produce. In this case, product shortages may occur.There will be more demand for the product than supply. The only way to keep the market in equilibrium is to not intervene in prices, letting the competition rules prevail.

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