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Price Ceiling

Why do govern...

Question

Why do governments use price ceilings?

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Solution

The main purpose of the government behind implementing price ceilings is so that it can control the maximum price that can be charged by suppliers of commodities.
By keeping a check on the price of a good or service, the government makes it affordable and easy for the general public.
Also read:
Difference Between Price Ceiling and Price Floor
Market Equilibrium

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