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Why is price ceiling resorted by the government? - Economics

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Question

Why is price ceiling resorted by the government?

Short Answer
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Solution

The government resorts to price ceilings to make essential goods and services affordable for the common people, especially when market prices become too high. It helps protect consumers from exploitation and ensures access to basic necessities like food, fuel, and medicines at reasonable prices.

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Chapter 6: Market Mechanism: Equilibrium Price and Quantity in a Competitive Market - TEST YOURSELF QUESTIONS [Page 114]

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Frank Economics [English] Class 12 ISC
Chapter 6 Market Mechanism: Equilibrium Price and Quantity in a Competitive Market
TEST YOURSELF QUESTIONS | Q 26. | Page 114
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