Administered price

Price controls are governmental restrictions on the prices that can be charged for goods and services in a market. The intent behind implementing such controls can stem from the desire to maintain affordability of goods, to prevent during shortages, and to slow inflation, or, alternatively, to ensure a minimum income for providers of certain goods or a minimum wage. There are two primary forms of price control, a price ceiling, the maximum price that can be charged, and a price floor, the minimum price that can be charged.

Historically, price controls have often been imposed as part of a larger incomes policy package also employing wage controls and other regulatory elements.

Although price controls are sometimes used by governments, economists usually agree that price controls don't accomplish what they are intended to do and are generally to be avoided. For example, nearly three-quarters of economists surveyed disagreed with the statement, "Wage-price controls are a useful policy option in the control of inflation."

The Roman Emperor Diocletian tried to set maximum prices for all commodities in the end of the 3rd century CE, but with little success.

During the French Revolution the General maximum or Law of the Maximum was instituted setting price limits on the sale of food and other staples.

Governments in planned economies typically control prices on most or all goods, though these schemes have not sustained high economic performance and have been almost entirely replaced by mixed economies.

Price controls have also been used in modern times in mostly free-market economies for such things as rent control.

During World War I, the United States Food Administration enforced price controls on food. Price controls were also imposed in the US and Nazi Germany during World War II.

...
Wikipedia