Question

What are the advantages of price ceiling?

Answer 1

The following are the advantages of price ceiling:

1. It prevents extraordinary increase in the price of goods and services.
2. It lowers the prices for the consumers.
3. It stops producers from charging exorbitant prices on their products.
4. It increases the efficiency of the producers by leading them to reduce production costs in order to save money.

Also read:

• Difference Between Price Ceiling and Price Floor
• Market Equilibrium

Learn about more questions and answers on business studies and various other commerce topics from our website.