MyEconLab Concept Video
Congress might want to set a price or a quantity at a level that it chooses rather than at the level determined by market forces. What are the effects of this type of government action in a market? You’ll find the answer in this chapter, starting with a government attempt to place an upper limit on a price.
A government regulation that places an upper limit on the price at which a particular good, service, or factor of production may be traded is called a price ceiling (or a price cap). Trading at a higher price is illegal.
A price ...