Prices are a tool to transmit information. Price controls conceal information that free market prices would reveal. Prices under a price-control regime convey misinformation. They systematically falsify economic conditions to producers and consumers alike.

Distorted Incentives & Allocative Inefficiency are the byproduct of price controls.

When governments set price ceilings (maximum prices) on essential goods like food, it discourages producers from supplying these goods because they can't cover their production costs.

In the short term, this may lead to consumers paying lower prices, but it reduces the incentive for producers to invest in production or expand their operations.

Price controls create a situation where the quantity demanded exceeds the quantity supplied at the controlled price, leading to shortages. Consumers may scramble to buy the limited available supply, exacerbating the problem.

"There is no third system between a market economy and socialism. Mankind has to choose between those two systems" -Mises