legal maximum that can be charged for a good
A price ceiling is a legal maximum that can be charged for a good. The ceiling is shown by a horizontal line at the ceiling price which--to be effective--is set below the equilibrium price. The figure titled Price Ceiling illustrates a ceiling at $2. price ceiling is a legal maximum that can be charged for a good. The ceiling is shown by a horizontal line at the ceiling price which--to be effective--is set below the equilibrium price. The figure titled Price Ceiling illustrates a ceiling at $2.