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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

price ceiling

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


Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
The Department of Health (DOH) plans to impose a price ceiling on certain drugs even as a pharmaceutical and health care group wants to keep the status quo.
That use of a price ceiling has forced CPC to absorb NT$1.8 billion in crude price increases in the first six months of 2019.
This is because of the corresponding changes in standards that accompanied adjustment in the price ceiling for socialized housing.
'One peso is way too much to pay for every text message you send,' Senator-elect Imee Marcos said Thursday after filing Senate Resolution 6, asserting that cheaper text messages and enforcing a strict price ceiling are 'long overdue.'
6, Marcos urged the Department of Information and Communications Technology (DICT) to immediately reduce and set a strict one-centavo price ceiling on the cost of a text message, saying text messaging is "a practically costless forwarding service" that piggybacks on a readily available signal.
'In addition, inflation fell by 0.3 per cent, mainly due to lower domestic fuel prices arising from the resumption of the managed float fuel pricing mechanism and the setting of a lower price ceiling for RON95 petrol,' Azmin said.
The Antique Provincial Price Coordinating Committee has decided not to impose the automatic price ceiling (APC) on basic necessities and prime commodities even though the province is under a state of calamity.
He said that in the absence of a price ceiling in the markets, arhtis or commission agents and middlemen were free to sell the commodities at the rates of their own choice without any let or hindrance, while poor retailers were forced by various government departments to sell the merchandize at fixed rates, even below than their purchase prices.
figure By BRIAN OKINDA Millers have warned consumers to expect an increase in the price of Sh2 kilogramme maize flour packet, saying the government price ceiling is not tenable.
He also said a price ceiling was being set for the cost of the meters, at a maximum of "$25 to $30."
Except for agricultural and fisheries products, the price ceiling for other gift items remains at 50,000 won.