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AP Microeconomics
A price ceiling is a government-imposed maximum price that can be charged for a good or service in the market.
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Shortage: When a price ceiling is set below the equilibrium price, it creates excess demand and leads to a shortage of goods or services.
Black Market: Sometimes, when there is a price ceiling in place, people may turn to illegal markets where goods are sold at higher prices.
Rent Control: Rent control is an example of a price ceiling applied specifically to rental housing units.