Overview
A price ceiling is a crucial economic tool used by governments to ensure that essential goods remain affordable for consumers. By setting a maximum price, it aims to protect individuals from price gouging, especially during times of crisis or high demand. However, while the intention is to help cons...
Key Terms
Example: Rent control laws that limit how much landlords can charge.
Example: When the price of apples is $1, and the quantity supplied equals the quantity demanded.
Example: When many people want to buy a new video game console, but there are not enough available.
Example: Price ceilings on essential goods to prevent price gouging.
Example: Selling concert tickets at inflated prices outside the venue.
Example: Setting price ceilings to control inflation.