A law establishing a maximum legal price for a good or service (rent controls for example) is known as
A) an equilibrium price.
B) a price floor.
C) a price ceiling.
D) a price wall.

Question

Quizplus · Accepted Answer

A price ceiling is a legal maximum price that can be charged for a good or service. This is often done to protect consumers from high prices, but can lead to shortages and decreased quality in the long run. Rent controls, for example, are a common form of price ceiling.

A Law Establishing a Maximum Legal Price for a Good