A price ceiling is
A) a minimum price set by government that sellers may charge for a good.
B) a maximum price set by government that sellers may charge for a good.
C) the difference between the initial equilibrium price and the equilibrium price after a decrease in supply.
D) the minimum price that consumers are willing to pay for a good.

Question

Quizplus · Accepted Answer

A price ceiling is a legal maximum on the price at which a good can be sold. It is set by the government to ensure that goods remain affordable to the general public.

A Price Ceiling Is