How does a price ceiling and a price floor affect the pricing system in a capitalist economy?

Question

How does a price ceiling and a price floor affect the pricing system in a capitalist economy?

Answer 1

Ceilings and floors restrict the movement of pricing--in other words, you can't go below the floor or above the ceiling.  In agriculture, that usually means that items are higher when supply is plentiful than they would be under total market conditions.  Ceilings prevent price spikes when there is scarce supply.