Final answer:
A price ceiling is a legal maximum price set by the government to keep the price of a necessary good or service affordable.
Step-by-step explanation:
A price ceiling is a legal maximum price that one pays for some good or service. It is imposed by the government to keep the price of a necessary good or service affordable.
For example, during Hurricane Katrina, the price of bottled water increased above $5 per gallon, prompting calls for price controls. However, a price ceiling was not imposed in that particular case.