Question

why does the government place price ceilings on some essential goods

Answer 1

Hello,

The government places price ceilings on some \(\textit{essential goods}\) to keep \(\textit{essential goods}\) from becoming ridiculously expensive. Notice the name \(\textit{essential goods}\) and not \(\textit{luxury goods}\) essential goods are absolutely necessary for ones lively hood. This is why there are price ceilings so even the poor underclass can afford the \(\textit{essential goods}\).

More information:
An example of an \(\textit{essential good}\) that the United States government has placed a price ceilings on is rent. For even more information check out Wikipedia under 'Rent control' or just tag me and I will explain if you like.

Peace.