Suppose that the government establishes a price ceiling of $3.70 for wheat.

a. why might the government establish this price ceiling?

If the government puts a price ceiling on wheat, they want to make sure that producers aren't selling wheat for a higher amount. A price ceiling is the max price that a producer can price an item to be. By doing this, they make sure that a producer isn't pricing items in demand up extremely high to charge a consumer an obsene amount.