At this rate there is a shortage (demand for 40 houses, but supply is for only 20 houses). Now, the government determines a price ceiling of Rs. 3 has been determined as the equilibrium price with the quantity at 30 homes. However, prolonged application of a price ceiling can lead to black marketing and unrest in the supply side.įor example: Let's consider the house-rent market.
Definition (noun) an uncalled-for burden Example. Definition (noun) the act of imposing something (as a tax or an embargo) Synonyms: infliction. Would it be an imposition to ask that you come to the church to see me She felt the journey to be an unwelcome imposition on her time. imposition - Dictionary definition and meaning for word imposition. A war requires imposition of heavy taxes. This is done to make commodities affordable to the general public. Imposition upon various color film of the cross and the angular line alignment. Price ceiling has been found to be of great importance in the house rent market.ĭescription: Government imposes a price ceiling to control the maximum prices that can be charged by suppliers for the commodity. imposition synonyms, imposition pronunciation, imposition translation, English dictionary definition of imposition. It has been found that higher price ceilings are ineffective. Definition: Price ceiling is a situation when the price charged is more than or less than the equilibrium price determined by market forces of demand and supply.