Answer
When the price of a good is not allowed to bring supply and demand into equilibrium, a price floor, a price ceiling, or a tax can be used to allocate resources.
Work Step by Step
A price ceiling is a legal maximum on the price of a good or service. A price floor on the other hand is a legal minimum on the price of a good or service. A tax is levied by the government and the burden of a tax will either fall on the buyer or the seller.
