Maximum price

• Price ceiling


  A fixed price set by the government, usually below the equilibrium price
• Price ceiling enacted by government


  Increases affordability of necessity goods and services
• Price cannot go above the price ceiling
• Deadweight loss


  Excess demand caused by the price ceiling
• Price decreases


  Demand expands (more consumers are willing to buy)
• Price decreases


  Supply contracts (producers are less willing to produce)
• Price decreases


  Revenue decreases