price celing

When price ceilings are non-binding and appropriately regulated, then they can be effectively implemented economic tools. When established as non-binding price ceilings, demand and supply are able to stay up. Customers are willing to pay slightly more for a product as long as there is plenty to buy. If price ceilings were binding, then suppliers would drop out and cause a shortage in the product. Especially because if costs are lowered too dramatically, then quality is often reduced as well. By providing a product that is attainable by many and supplied in plenty (with good quality) then the product will be able to be economically stable. I would personally put price ceiling son things like tobacco, alcohol, and other addictive products. This would discourage young people to attempt to purchase such products while still allowing the legal buyers to purchase such products.