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price ceiling is a goverment-imposed price control or limit on how high a price is charged for a product.Govenment impose price ceiling to control the maximum price that can be charged by suppliers for products .minimum wage laws in us were first introduced during 1930s in response to great depression.The result was falling in output,prices and lower employment level in U.S.The goverment of U.S also imposed a fixed price in fuel and rent of apartments in the year 1971-1973.it resulted in consumer protection and also hurt the investors.Ceiling helped in preventing certain price of important and basic commodities.I would recommend ceiling in a country which is strugling and suppliers are earning excess profits.
A good example is that the year 1970s.The government controlled the prices of gasoline, causing shortages.
Another example is the price ceiling on rent specially after second world war when soldiers were free and they were going to make families and it is still in the practice
one more example is the prices of "rotti" in Pakistan govt set the price RS 2.00 per rotti which is low than the equilibrium price.I had provided the one about gaosoline before.very important .
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