Give an example of a price ceiling.

A price ceiling is a government-imposed limit on the price of a good or service, which prevents the price from rising above a certain level. This is often implemented to protect consumers from overly high prices. Rent control policies serve as a clear example of a price ceiling, as they set a maximum allowable rent that landlords can charge for leased properties. By keeping rents below the market equilibrium price, these policies aim to make housing more affordable for tenants.

In contrast, minimum wage laws set a floor for wages, ensuring workers earn at least a certain amount, which relates to price floors rather than ceilings. Sales tax regulations impose additional costs on consumers but do not limit prices in a downward direction. Import tariffs are taxes on imports meant to protect domestic industries by making foreign goods more expensive but are not related to setting price limits on domestic goods or services. Thus, rent control exemplifies how a price ceiling operates in practice.