Price ceilings are created to keep products affordable for consumers. Answer

a. True

b. False

Answer : a. True

It is true that price ceilings are created to keep products affordable for consumers. Price ceilings are set by the government. It is a government initiative to regulate the prices of commodities, products and services in the market to protect the consumers' interests and rights. In deciding the price ceiling, it must be considered that it should be below the natural market equilibrium. Legally, the prices can't just be raised suddenly but must follow certain legal and business procedures.