A price ceiling is:
A)a maximum price sellers are allowed to charge for a good or service.
B)the difference between the quantity supplied and quantity demanded.
C)a minimum price buyers are required to pay for a good or service.
D)the deadweight loss caused by an inefficiently low quantity.

Question

Quizplus · Accepted Answer

A price ceiling is a government-imposed limit on the price of a good or service. It is set by the government below the equilibrium price and aims to make the product more affordable for consumers. As a result, sellers are not allowed to charge a higher price above the ceiling, which creates a maximum price.

A Price Ceiling Is