Price ceilings are government-imposed limits on how high the price of a product or service can reach. They are designed to prevent prices from rising too high and to make essential goods and services more affordable for consumers. Find out more detailed examples and effects of price ceilings in the blog from Priceva by https://priceva.com/blog/price-ceiling
Here are the main types of price caps and their consequences:

1. Absolute price ceiling:
An absolute price ceiling sets a maximum price that cannot be exceeded under any circumstances. This is a strict limit, often set by law or regulation. This type of ceiling is usually used in emergencies or to control the prices of essential items such as food and medicine during a crisis.

2. Relative price ceiling:
A relative price ceiling is set relative to the prevailing market price or reference price level. It adjusts based on market conditions and is often used in industries where prices are volatile. This type of ceiling is intended to ensure that prices remain affordable compared to other products or standard measures.

3. Regional price ceiling:
Regional price ceilings are applied to specific geographic regions, usually to address local shortages or economic conditions. For example, a government may set a price ceiling in a region affected by a natural disaster to ensure that essential goods remain affordable for residents.