Price+Celings

Definition: __Price Ceilings__ are the highest price limit at which products can be sold.

Price Ceilings must be set //**below**// the equilibrium in order for them to be effective.

[|Price Ceilings Article]

The 1985 Farm Bill set a price ceiling on the exports of American farms, because prices were rising too high and sales were decreasing. Setting the price ceiling boosts export sales because it makes the products more affordable.