The government-imposed upper limit on the price of a good or service is called __________.
Answer & explanation
Correct answer: option 2
The correct answer is option 2: Price ceiling
- A price ceiling is a government-imposed upper limit on the price of a good or service.
- It is set below the equilibrium price to make essential goods more affordable to consumers.
- Examples include rent control, price caps on essential medicines, and price limits on food grains.