Market distortion

Wikipedia, the free encyclopedia - Cite This Source

A market distortion is a specific type of market failure brought about by deliberate government regulation which prevents economic agents from freely establishing a clearing price.

Examples:

Prescribing a certain price (setting price caps as well as price floors) by non-market means (e.g. price regulation - cf. socialist economy)
Restricting the manufacture or imporation of a certain good, which thereby restricts supply.