The correct answer is:
True
Explanation:
1. A price ceiling is a government-imposed limit on the maximum price that can be charged for a product or service.
2. This measure is often put in place to protect consumers from price gouging or to make essential goods more affordable.
3. Price ceilings can lead to shortages if the set price is below the market equilibrium price, as suppliers may not find it profitable to produce the goods or services.
4. Examples of price ceilings include rent control in certain cities and regulations on the prices of essential goods during times of crisis.
