A price cap is a type of price control, usually sanctioned by the government, that sets the maximum amount a seller can charge for a product or service.
Price ceilings are usually set on essential goods such as food, gas or medicines, often after a crisis or a certain event that causes prices to skyrocket.
The opposite of a price ceiling is a price floor, a point below which prices cannot be set.
While they make basic products available to consumers in the short term, price ceilings often carry long-term disadvantages such as shortages, markups, or lower product quality.
Economists fear that price ceilings cause permanent damage to the economy, making it more inefficient.