They were unable to pay their rent and keep their apartments or homes, so the government stepped in and put a ceiling on the price that their apartment or home could be preventing military families from being ousted. Today, rent controlled apartments for individuals that qualify are still allowed to live in rent controlled apartments because price ceilings still exist in this particular example.
Though, the price controls that the government can put on certain goods and commodities can have both a substantial effect on the economy. If a price ceiling is established then more consumers are will stay in their apartment for instance, which drives the amount of apartments that are available down; thus, if there...
Furthermore, if the government institutes a price floor it would shift the equilibrium to the right, the price of the good or service would bottom out at some point which would make the price cheaper and the quantity increase as well.
Bibliography
Rockoff, H. (2008). Price controls. Retrieved from http://www.econlib.org/library/Enc/PriceControls.html
Taylor, B. (2006). Price floors. Retrieved from http://economics.fundamentalfinance.com/micro_price-floor.php
