A price ceiling is a government imposed restriction on the maximum price which suppliers can charge for a particular good.
A price floor is a government imposed restriction on the minimum price which suppliers can charge for a particular good.
Inputs
If the market for a particular good can be represented by the supply and demand functions,
Qs = C + Dp and Qd = A – Bp
(see perfect competition, linear equilibrium for more information),
and a price ceiling is being imposed in the market for the good is being sold, you can calculate and determine the effects on consumer and producer surplus, as well as societies welfare in general, as a result of this price regulation being enforced.
For example if the market for bluetooth speakers is represented by the supply and demand functions,
Qs = 30000+100p and Qd = 370000 - 875p
and a price ceiling of $165 is imposed in the market for bluetooth speakers, then the following would be inputted into the above calculator
| A | 370000 |
| B | 875 |
| C | 30000 |
| D | 100 |
| Regulation Type | Price Ceiling |
| Price | 165 |
References