Explain the meaning and need for maximum price ceiling.

1.	Explain the meaning and need for maximum price ceiling.
Answer» <html><body><p><br/></p>Solution :Maximum price ceiling refers to the maximum price that the producers are allowed to charge by <a href="https://interviewquestions.tuteehub.com/tag/selling-25929" style="font-weight:bold;" target="_blank" title="Click to know more about SELLING">SELLING</a> their goods and services. These interventions is usually done in the situations of "shortages" as if not controlled, this my lead to high market price of the good. It is <a href="https://interviewquestions.tuteehub.com/tag/generally-471963" style="font-weight:bold;" target="_blank" title="Click to know more about GENERALLY">GENERALLY</a> imposed on necessary items like <a href="https://interviewquestions.tuteehub.com/tag/wheat-736282" style="font-weight:bold;" target="_blank" title="Click to know more about WHEAT">WHEAT</a>, rice, kerosene, sugar etc. and it is <a href="https://interviewquestions.tuteehub.com/tag/fixed-457597" style="font-weight:bold;" target="_blank" title="Click to know more about FIXED">FIXED</a> below the market-determined price <a href="https://interviewquestions.tuteehub.com/tag/since-644476" style="font-weight:bold;" target="_blank" title="Click to know more about SINCE">SINCE</a> at the market-determined price some section of the population will not be able to afford these goods.</body></html>

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