Which one of the following is an example of a price ceiling?

A price ceiling is a government-imposed upper limit on the price of a good or service, typically set below the market-determined equilibrium price to protect consumers [3]. In India, the Maximum Retail Price (MRP) printed on products like biscuit packets serves as a legal price ceiling, as retailers are prohibited from charging customers more than this amount. While manufacturers determine the specific MRP value, it functions as a regulatory ceiling under the Legal Metrology Act to prevent overcharging. In contrast, the Minimum Support Price (MSP) for cane growers and minimum wages fixed by state governments are examples of price floors, which establish a lower limit on prices to protect producers and workers [4]. Airline fares in India are largely deregulated or subject to dynamic pricing rather than a fixed statutory ceiling.

Sources

1. [1] Microeconomics (NCERT class XII 2025 ed.) > Chapter 5: Market Equilibrium > 5.2.1 Price Ceiling > p. 84
2. [3] Exploring Society:India and Beyond ,Social Science-Class VII . NCERT(Revised ed 2025) > Chapter 12: Understanding Markets > Controlling prices for protecting buyers and sellers > p. 265
3. [2] Microeconomics (NCERT class XII 2025 ed.) > Chapter 5: Market Equilibrium > 5.2.2 Price Floor > p. 85
4. [4] Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 9: Agriculture > MINIMUM SUPPORT PRICE > p. 328