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 city council is likely to vote on a resolution during Monday's meeting that will specify a price ceiling on the project, now hovering at about $3 million.
As it stands, the law gives the commerce minister authority to order a price ceiling for a period of up to 45 days on any of the following: bread, whole milk, bottled water, Cypriot coffee and electricity.
With governments in Germany, the United Kingdom, Spain and Greece imposing a price ceiling on implants, manufacturers are forced to maintain a particular price level, says the analyst of this research service.
50 on calls and SMS to any Slovak mobile network, a data price ceiling of EUR 0.
Examples of such statements in this news release include, among other matters, our metal price ceiling exposure, our expectation to return to a normal SEC reporting cycle by the end of 2006, our guidance for the remainder of 2006 and 2007, and ability to better utilize our assets to drive shareholder value.
Contract Awarded for The modification of an existing contract to raise the price ceiling in support of the procurement of radios, support equipment, data and services
In connection with the disposition, the Company retired 20 MMcf/d of its natural gas hedges (by acquiring offsetting positions) covering the remainder of 2004 with a price ceiling of approximately $5.
The FIT should be replaced with a better plan that recognizes a price ceiling.
It empowers the Commerce Minister to order a price ceiling for any of these items for a period up to 45 days.
Now more than in the previous decade, iron alternatives may be ready to act as a price ceiling mechanism that will slow down the wild upward ride of the scrap seesaw.
The Manchester United boss said: "A ticket price ceiling would be the right way forward.