Maria owns several apartments that she rents for $800 per month. The local government decides that $800 is too high and passes an ordinance stating that property owners cannot charge more than $600 per month. This is an example of a price:

Question

Quizplus · Accepted Answer

A price ceiling is a government-imposed limit on how high a price can be charged on a product or service, in this case, setting a maximum rental price that is lower than the current charge, which is exactly what the local government did by capping the rent at $600.

Maria Owns Several Apartments That She Rents for $800 Per