Read the passage carefully and answer the questions based on the passage:
Concept of Price Ceiling
It is not very uncommon to come across instances where the government fixes a maximum allowable price for certain goods. The government-imposed upper limit on the price of a good or service is called a price ceiling. A price ceiling is generally imposed on necessary items like wheat, rice, kerosene, sugar etc. The objective of the price ceiling is to restrict the price of a good so that it becomes affordable for consumers to buy. However, it does not always generate the desired results. Most of the time, intervention by the government in the form of a price ceiling leads to various socio-problems.
Price ceilings are also known as ............
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Maximum price fixation.
A price ceiling is a maximum allowable price set by the government on certain essential goods and services.
It ensures that sellers cannot charge a price higher than this limit, making the product affordable for consumers.
Hence, price ceiling = maximum price fixation.