Economics Interview Question:

What is price ceiling and price floor?

Submitted by: Uzma

price ceiling: a legal maximum price of any good or service below equilibrium point.price ceiling states that sellers will not charge price above this level.e,g rent control (beneficial for buyers)

price floor: is legal minimum price above the equilibrium point set by government ,which states that buyers will not pay below this level (beneficial for sellers)
Submitted by: Uzma