Answer:
They create shortages in the market
Step-by-step explanation:
A price ceiling refers to the maximum amount that sellers are legally allowed to charge for products are services. The government uses price control to regulate prices when it feels they are rising at a fast rate. The price ceiling is set at a lower level than the equilibrium price as the government tries to tame rising prices.
The price ceiling brings about a shortage in the market. Suppliers will shy away from the market as the reduced price may not meet their cost. Price ceiling reduces supplier profits margins, which discourages supply.