A ceiling price in a competitive market will result in persistent surpluses of a product.

Ceiling Price

The maximum price set by a government or regulatory body for essential goods, above which they cannot be sold to prevent exploitation.

Competitive Market

A market structure characterized by many buyers and sellers, freedom of entry and exit, and products that are similar, leading to competition.

Surpluses

Situations in which the quantity of a good or service supplied exceeds the quantity demanded at a specific price, often resulting in excess stock.