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Pricing, quantity, and welfare effects of a binding price ceiling. There is a substantial body of research showing that under some circumstances price ceilings can, paradoxically, lead to higher prices. The leading explanation is that price ceilings serve to coordinate collusion among suppliers who would otherwise compete on price.
An ineffective, non-binding price floor, below equilibrium price. A price floor could be set below the free-market equilibrium price. In the first graph at right, the dashed green line represents a price floor set below the free-market price. In this case, the floor has no practical effect.
A related government intervention to price floor, which is also a price control, is the price ceiling; it sets the maximum price that can legally be charged for a good or service, with a common example being rent control. A price ceiling is a price control, or limit, on how high a price is charged for a product, commodity, or service.
More loosely, "rent control" describes several types of price control: "strict price ceilings", also known as "rent freeze" systems, or "absolute" or "first generation" rent controls, in which no increases in rent are allowed at all (rent is typically frozen at the rate existing when the law was enacted);
Resale price maintenance (RPM) or, occasionally, retail price maintenance is the practice whereby a manufacturer and its distributors agree that the distributors will sell the manufacturer's product at certain prices (resale price maintenance), at or above a price floor (minimum resale price maintenance) or at or below a price ceiling (maximum resale price maintenance).
What is the Debt Ceiling? The debt ceiling is the amount of money the U.S. government is legally allowed to borrow in order to pay its bills on pre-existing debt.
According to Eatwell, J. Malgate, M. Newman, P. (1989) credit rationing was briefly discussed in the context of usury ceilings by Adam Smith (1776), was a hot topic for debate in 19th Century England in regards to the bullion and currency controversies and also became topical in the USA following World War II as part of the ‘availability ...
The Emergency Price Control Act was penned as three titles specifying rulings for price controls regarding agricultural commodities, goods and services, and real property. The Act provided authority for enforcement, investigative reporting, and reviews of price stabilization schedules by the Office of Price Administration. The law specified a ...