Editing Price controls (section)

==Price ceiling==

{{Main|Price ceiling}}
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. Governments use price ceilings to protect consumers from conditions that could make commodities prohibitively expensive. Such conditions can occur during periods of high inflation, in the event of an investment bubble, or in the event of  [[monopoly]] ownership of a product,  all of which can cause problems if imposed for a long period without controlled rationing, leading to [[shortage]]s.<ref>{{Cite book|title=Principles of macroeconomics|last=Gregory|first=Mankiw, N.|isbn=978-1305971509|edition=Eighth|location=Australia|oclc=953710348|date = 2016-12-05}}</ref>

Further problems can occur if a government sets unrealistic price ceilings, causing business failures, stock crashes, or even economic crises. In fully unregulated [[market economies]], price ceilings do not exist. While price ceilings are often imposed by governments, there are also price ceilings that are implemented by non-governmental organizations such as companies, such as the practice of [[resale price maintenance]]. With resale price maintenance, a [[manufacturer]] and its [[distributor]]s agree that the distributors will sell the manufacturer's product at certain prices (resale price maintenance), at or below a price ceiling (maximum resale price maintenance) or at or above a [[price floor]].