price ceiling


A government-imposed upper limit on the price that may be charged for a product. If that limit is binding, it implies a situation of excess demand and shortage.

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I did not want to hear anything about the price ceiling because was not interested in what the government did.

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The local government established a price ceiling, in the form of rent control, for downtown studio apartments that caps monthly rent at $1,200 but has consequently made it difficult for young people to find available housing there.

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When war broke out, my company was only able to sell steel up to a certain price because the government had imposed a price ceiling to make sure it would be able to purchase steel for tanks and ships.

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price by volume chart (PBV) rent control