how do you calculate a price ceiling 
governments typically calculate price ceilings that attempt to match the supply and demand curve at an economic equilibrium point for the product or service in question they impose control within the boundaries of what the natural market will bear but the price ceiling itself can impact the supply and demand of the product or service over time the calculated price ceiling may result in shortages or reduced quality in such cases the bottom lineprice ceilings prevent a price from rising above a certain level they re a form of price control they often benefit consumers in the short run but the long term effects of price ceilings are complex they can negatively impact producers and sometimes even the consumers they aim to help by causing supply shortages and a decline in the quality of goods and services 