Hurricane Katrina, the price of bottled water increased above $5 per gallon. As a result, many people called for

price controls on bottled water to prevent the price from rising so high. In this particular case, the government

did not impose a price ceiling, but there are other examples of where price ceilings did occur.

In many markets for goods and services, demanders outnumber suppliers. Consumers, who are also potential

voters, sometimes unite behind a political proposal to hold down a certain price. In some cities, such as

Albany, renters have pressed political leaders to pass rent control laws, a price ceiling that usually works by

stating that landlords can raise rents by only a certain maximum percentage each year. Some of the best

examples of rent control occur in urban areas such as New York, Washington D.C., or San Francisco.

Rent control becomes a politically hot topic when rents begin to rise rapidly. Everyone needs an affordable
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