Question

Which term is defined as the maximum legal price for a good or service?

Answer 1

The term that is defined as the maximum legal price for a good or service is the price ceiling.

Explanation:

A price ceiling happens once the government puts a legal limit on how high the worth of a product may be. so as for a price ceiling to be effective, it should be set below the natural market equilibrium. When a price ceiling is about, a shortage happens. For the worth that the ceiling is about at, there's a lot of demand than at the equilibrium worth. there's additionally less offer than at the stability worth, therefore there's a lot of amounts demanded than the amount provided. Associate degree inability happens, since at the worth ceiling amount equipped the marginal profit exceeds the distinctive cost. This inefficiency is adequate to the deadweight welfare loss.

Answer 2

The term that is defined as the maximum legal price for a good or service is price ceiling. 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. I hope this answer helps and mark as brainliest.