Question

With the aid of relevant examples distinguish between administered prices and price control

Answer 1

An administered price is a price of good or service set by a government as opposed to market forces, whereas price control is an example of administered price. So, price control is a sub category of administered price. Examples of administered price are price control and rent control. Price controls are imposed to maintain the affordability of certain goods and to prevent the soaring prices during shortages.

Price control may specify a price ceiling, a price floor or both. They may apply to stable goods like sugar and even on intangible prices such as interest rates.