1.4.1 Maximum Prices (Edexcel A-Level Economics Teaching PowerPoint)

This teaching powerpoint covers maximum prices as a form of government intervention.

Maximum prices, also known as price ceilings, are the opposite of minimum prices. They're a type of government intervention in the market that sets a maximum price for a good or service. For example, governments often set maximum prices for things like rent or gasoline in an attempt to keep costs low for consumers. Like minimum prices, maximum prices can have both positive and negative effects. They can help to protect consumers from high prices, but they can also lead to shortages if the price is set too low. They also discourage companies from investing in ways to increase supply and improve quality.