Respond to the following in a minimum of 175 words: How do price controls affect the market? Provide a real-world example that takes consumer surplus and producer surplus into consideration. Please...

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Price Control and its effect in the market:
Price control is the scenario when the government sets the minimum and the maximum price for a good. This is done to regulate the economy and the buying power of people and can be binding and non-binding. This is a regulatory tool used by the government to maintain availability of stable foods and prevent inflation of prices during shortages. Price controls in a market generally distort the working of the market dynamics and creates either shortage or oversupply of goods. But at times it works out to be beneficial when price control can help with highly volatile agricultural...