Price Ceiling

By: Lauren Weil & A.J. Smith

Price ceiling- The maximum price a seller is allowed to charge for a product or service. Price ceilings are usually set by law and limit the seller pricing system to ensure fair and reasonable business practices. Price ceilings are usually set for essential expenses; for example, some areas have "rent ceilings" to protect renters from climbing rent prices

People in America wanted to keep the cost of rent at a low thus the term rent control. The government set the price ceiling on rent so renters don't raise the prices.

Comment Stream