Price Ceiling

What does Price Ceiling mean?

A price ceiling is a government-imposed price control, or limit, on how high a price is charged for a product. Governments use price ceilings to protect consumers from conditions that could make commodities prohibitively expensive.

Price Ceiling is a sum of money granted by the state or a public body to help an industry or business keep the price of a commodity or service low

?What does Stakeholders mean

A stakeholder has a claim to a part of the corporation's assets and earnings. In other words, a stakeholder is an owner of a company. Ownership is determined by the number of shares a person owns relative to the number of outstanding shares.

Stakeholders can affect or be affected by the organization's actions, objectives and policies. Some examples of key stakeholders are creditors, directors, employees, government

What is an example of price celiling

Price ceiling is a situation when the price charged is more than the equilibrium price determined by market forces of demand and supply.

Price ceiling is a situation when the price charged is less than the equilibrium price determined by market forces of demand and supply.

Price ceiling is a situation when the price charged is more than or less than the equilibrium price determined by market forces of demand and supply.

Who is a stakeholder when a price ceiling is introduced

Government only

Producers only

Consumers only

Government, Producers, and Consumers only

Name one advantage of price celing

Suppliers are discouraged from producing more of an item when they can’t set their own prices

Price ceilings help prevent suppliers from engaging in price gouging, or charging outrageously high prices for limited goods or services simply because they are able to

Rice ceilings also reduce the quality of products, as suppliers have less financial resources to reinvest in their business.

Unlock and Upgrade

Remove all limits from your Quizzes

Price Ceiling

More Quizzes