price ceilings
Legal rate caps
Price ceilings are government-imposed maximum prices for goods or services, set below what the market would otherwise bear.
Rent control is a classic example.
Economists generally argue that price ceilings create shortages, since suppliers have less incentive to produce while demand increases: The price ceiling on gasoline led to long lines at filling stations.
- shortagesInsufficient quantities available
- bread linesHungry people waiting
- housing shortageLack of available dwellings
- statutory limitsLaw-imposed boundaries
- rent controlHousing price regulation
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- pricingpricing, overpricing, discounts, overcharge, markdowns
- economic policymonetary policy, tax policy, fiscal discipline, fiscal stimulus, fiscal restraint
- price controlsrent control, interest cap, usury laws, minimum wage, wage controls
- agrarian policyagrarian reform, farm bills, farm bill, farm credit, tenant rights
- economicssupply and demand, inflation, GDP, GNP, gross domestic product
- farm economicsfarm economy, farm income, farm loans, farm credit, farm management