Question

what is price ceilling and price floor?

Answer 1

Price Ceilings are highest rates set by the administration for particular goods and services that they consider being traded at a high price and thus consumers need some help buying them. Price ceilings only become a predicament when they set it below the market equilibrium price. While price floor limits how low a price should be imposed for a product and it must be higher than the equipoise price to be effective.

Answer 2

Explanation:

Price floors and price ceilings are government-imposed minimums and maximums on the price of certain goods or services. It is usually done to protect buyers and suppliers or manage scarce resources during difficult economic times..

Hope its help..