Where do we find examples of price ceilings in the real world?
2. There are many examples of price ceilings. A common example is government set rent control. In order to provide more affordable housing the government often sets a price ceiling on rents. The rationale behind this is to ensure for renters there will be affordable housing for those who cannot afford the current market price. A second example of price ceilings is usury laws. Usury laws prohibit the charging of excessive interest on loans. Essentially the law acts like a price ceiling because it sets the legal maximum interest rate that can be charged on loans. A final example of price ceilings is a historical one and it occurred in the 1970’s. The U.S. government set a price ceiling on gasoline to make it more affordable for consumers. Due to the increased demand for gasoline, consumers had to wait in long lines to get gas and often were unable to purchase gasoline due to the shortage that was caused by the price ceiling. Research on this event concluded that the true price of gas, wh
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