Price Ceiling

Definition

Noun.

A price limit or cap imposed by governments or regulatory authorities to prevent the price of a goods or service from exceeding a certain level. This practice is typically intended to protect consumers or ensure price stability.

Origin

The word "price" entered Turkish from Arabic "fīyāt" (compensation, value). "Ceiling" in Turkish refers to the upper limit of structures and is used in the sense of a maximum bound. The English term "price ceiling" is the source of this concept, and it is a standard term in economic literature (common).

Applications

• Economics: A commonly encountered concept in price controls and market regulation.
• Public Administration: Included in regulations that impose price limits in the development of social policy.
• Trade: Used in business to protect consumers and monitor markets.

Example Sentences

• The state imposed a price ceiling to prevent increases in essential goods.
• A price ceiling can lead to shortages in the market and black market activities.
• In the energy sector, a price ceiling is applied as a measure to protect consumers from sudden price hikes.

Related Terms

• Price Control
• Supply and Demand
• Market Regulation
• Consumer Protection
• Black Market