Answer to Question #124505 in Microeconomics for Nur Hazirah Binti Khair Azahar

Question

what are type of the types of ceiling price implemented during festive seasons?

Answer 1

A price ceiling is a legal maximum price that one pays for some good or service.

During festive seasons government has the duty of ensuring buyers are not exploited by sellers whom may decide to increase prices of some goods and services.

For example prices of most need products during festive season like food stuffs, drinks and entry fees.

So the government will introduce a price control for such products for their demands increase during festive seasons.