A price ceiling is a government-imposed limit on how high a price can be charged for a product or service. This regulation is often set to protect consumers from excessively high prices, especially for essential goods like food or housing. When a price ceiling is established, sellers cannot charge more than the specified maximum price, which can lead to increased demand for the product. However, price ceilings can also result in shortages. When prices are kept artificially low, suppliers may not find it profitable to produce enough of the good, leading to a situation where demand exceeds supply. This imbalance can create long waiting lists or reduced quality of the product, affecting both consumers and producers.