AP MicroeconomicsSupply & Demand
Price Ceiling
A price ceiling is a government-imposed maximum price that can be charged for a good or service.
Price ceilings are typically set below the equilibrium price to make essential goods more affordable. However, they can lead to shortages, as quantity demanded exceeds quantity supplied at the ceiling price.
Interactive graph
Supply and Demand →
Drag the curves and see it for yourself.
Study module
Supply and Demand →
Full lesson, practice questions, and flashcards.