price ceiling

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Price Ceiling

The highest price for a good or service permitted by a government. A government may impose a price ceiling to protect consumers or to combat inflation. Many economists believe setting price ceilings is economically inefficient and a better response is to find a way to increase the supply of a good or service in order to bring down prices.

price ceiling

the maximum PRICE that can be charged for a PRODUCT, as determined by the government. Contrast PRICE FLOOR.

See PRICE CONTROLS, PRICES AND INCOMES POLICY.

References in periodicals archive ?
The amendments would require reporting on all price reductions so the PMPRB could account for all reductions when setting price ceilings and monitoring compliance.
Any purchase order will be preceded by an estimate accepted by france mdias monde, Showing the price ceilings set in the bpu.
This was the first day after price ceilings for RCA policies were removed.
These are the price ceilings that operators are free to compete within by setting prices below these regulatory caps to provide more attractive and innovative offers to consumers.
NPPA has imposed price ceilings on 509 formulation packs covering 348 drugs classified under the National List of Essential Medicines.
The National Development and Reform Commission (NDRC), which can adjust the price ceilings on a bi-weekly basis, posted the statement on its website shortly after the Ministry of Finance said it would raise consumption taxes on oil products such as gasoline and diesel for the third time in six weeks.
This "allocative cost" of price ceilings has been noted, for example, in rental housing markets, but has tended to receive much less attention than the efficiency cost of too much or too little consumption.
Egypt's cabinet decided in September to impose price ceilings on fruits and vegetables.
The Price Act (Republic Act 7581) mandates the DOH to automatically freeze the prices of essential drugs classified as basic commodities or impose maximum price ceilings particularly in times of calamities to protect consumers from profiteering, hoarding, cartels and other such violations by traders who may take advantage of the calamity situation.
It is therefore likely that the President will again refuse to sign the updated law because of the inclusion of electricity price ceilings.
They will also put new retail price ceilings on charges.
Summary: Lebanon's transport unions reconfirmed Wednesday a strike scheduled for May 24, reiterating demands for price ceilings on gasoline and diesel.