Effects of Government Intervention / Price Control

When the government steps in to intervene in the free market, they're usually trying to accomplish something, like trying to correct the market, or give a sector of folks better wages. For instance, it's common in many countries that agriculture is given a price minimum to help pad the pockets of farmers.

Government intervention via price changes causes the costs and benefits in a market to change, whether that's through setting a price ceiling or price floor, limiting price increases, direct price setting, or setting a buffer stock (which is keeping something below a price ceiling, but above a price floor).