CameraIcon

SearchIcon

MyQuestionIcon

1

You visited us 1 times! Enjoying our articles? Unlock Full Access!

Price Ceiling

Why do govern...

Question

Why do governments use price ceilings?

Open in App

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

Suggest Corrections

thumbs-up

0

Similar questions

Q. The government imposing upper limit on the price of goods and services is called a) price ceiling. B) service floor . C) price floor D) none of the above

Q. The government imposing upper limit on the price of goods and services is called ,a. Price ceiling b. Service floor c. Price floor d. None of the above

Q. Why do governments invest in health and education?

Q. Define price ceiling. What are the consequences of imposition of ceiling below
the equilibrium price?

Q.
Define price ceiling.

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Market Interventions and Policy Failures

ECONOMICS

Watch in App

explore_more_icon

Explore more

Standard XI Economics

Join BYJU'S Learning Program

CrossIcon