what is the difference between a price floor and a price ceiling?
A price ceiling is the maximum price that can be charged for anitem. You can charge any price equal to or lower than the ceiling.A price floor is the minimum price that can be â¦ charged for an item.You can charge any price equal to or greater than the ceiling. tom bombadil
A price ceiling is only biâ¦nding when the equilibrium price is above the price ceiling. The market price then equals the price ceiling and the quantity demanded exceeds the quantity supplied, creating a shortage of goods. A price floor is only binding when the equilibrium price is below the price floor.