Price ceiling sets a maximum legal price that a seller may charge, typically placed below equilibrium. What do you think of a government placing a price ceiling the next time gasoline prices rise above $4.00 a gallon?© BrainMass Inc. brainmass.com October 10, 2019, 4:29 am ad1c9bdddf
A price ceiling is an artificial cap on the price at some given point below the equilibrium price. This means that if markets were free to adjust to supply and demand, the price would increase to the equilibrium level.
When a price ceiling is implemented, the quantity demanded is higher than the quantity supplied at ...
The expert examines price ceilings for legal prices.