What is the concept of a price ceiling in economics?

A price ceiling is a government-imposed limit on how high the price of a good or service can be. It is typically set below the market equilibrium price in order to make essential goods more affordable for consumers. For example, rent control laws often establish price ceilings on housing rents to prevent landlords from charging excessively high prices. While price ceilings can benefit consumers in the short term, they can also lead to shortages, as producers may not be willing to supply enough of the product at the lower price. This can result in reduced quality, lower availability, and black markets where goods are sold at higher prices.