price cap

Maximum allowed cost

A price cap is a maximum price set by government or regulatory authority, preventing sellers from charging more than a specified amount.

Price caps typically target essential goods or services—utilities, rent, pharmaceuticals—to protect consumers from exploitation or inflation: The city imposed a price cap on rent increases.

Critics argue price caps can create shortages by discouraging supply.

Opposites
price constraint direction

price capprice floor

Lowest permitted cost

minimum wage · reserve price

market intervention vs. free pricing

price capderegulation

Removing governmental business restrictions

laissez-faire · dynamic pricing · surge pricing

cost reduction mechanism

price capsubsidy

Financial assistance from government

price guarantee · voucher · rebate · tax credit · direct payment

Family

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Familiarity
Top 200,000
Profile
Used worldwide · Timeless · Rated G