What is price ceiling?

A price ceiling is a government-imposed limit on the price that can be charged for a particular good or service. This is typically done in order to protect consumers from being charged excessively high prices by monopolistic or oligopolistic companies. Price ceilings are often used in markets where there is a lack of competition or where the demand for a particular good or service is inelastic.

A price ceiling is a government-imposed maximum price that can be charged for a particular good or service. It is typically implemented to make a good or service more affordable to consumers. However, price ceilings can also have negative consequences, such as shortages of the good or service, reduced quality, and increased black market activity.