The fixing of maximum prices by government is mainly on?

Question: The fixing of maximum prices by government is mainly on?

The government's intervention in fixing maximum prices, commonly known as price ceilings, is primarily aimed at essential goods and services that are deemed necessary for the general welfare of the public. This regulatory action is taken to ensure affordability and prevent situations where market conditions could lead to prohibitively high prices. Typically, these controls are applied to commodities like food, fuel, and housing, which are critical for daily living and where excessive prices could lead to significant hardship for consumers, especially those with lower incomes. The rationale behind such measures is to protect consumers from potential exploitation, particularly in scenarios where there may be limited competition or monopolistic practices. However, while the intention is to aid consumers, economists often point out that such controls, if not managed carefully, can result in shortages, reduced quality, and the emergence of black markets.

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