Certified Materials and Resource Professional Practice 2026 – All-in-One Guide to Exam Excellence!

A price ceiling is a regulatory measure set by the government to establish a maximum price for a particular good or service. The primary goal of implementing a price ceiling is to make essential goods more affordable for consumers, particularly when prices are expected to rise significantly due to market forces. By limiting the maximum price that can be charged, a price ceiling aims to keep essential products accessible to consumers, preventing price gouging during times of high demand or limited supply.

In this context, the other options do not accurately describe the purpose of a price ceiling. While a price ceiling may indirectly affect supply and demand, its main function is explicitly to cap prices. It does not aim to increase supply; instead, it can sometimes lead to reduced incentives for producers to supply the good, potentially creating shortages as a secondary effect. Additionally, the intention is not to minimize consumer demand but to protect consumers from excessively high prices. Therefore, the most appropriate interpretation of what a price ceiling aims to achieve is to limit the price of a product.