100k views
5 votes
explain the effect of a price ceiling on the quantity of a good and who this intervention intends to assist.

User Sgarizvi
by
8.9k points

1 Answer

1 vote
A price ceiling is the maximum price a company is allowed to charge for that good. This is intended to assist the consumers so that they would not have to be an insane amount for a product.
User Tread
by
8.7k points