24.1k views
4 votes
What is the difference between a price floor and a price ceiling?

1 Answer

6 votes

Answer

Price controls come in two flavors. A price ceiling keeps a price from rising above a certain level (the “ceiling”), while a price floor keeps a price from falling below a certain level (the “floor”).

Step-by-step explanation:

User Liorr
by
6.8k points