A price ceiling is a government-imposed limit on how high a price can be charged on a product. For a price ceiling to be effective, it must differ from the free market price.... , the maximum price that can be charged
A price floor is a government- or group-imposed limit on how low a price can be charged for a product. In order for a price floor to be effective, it must be greater than the equilibrium price.... , the minimum price that can be charged
