price cap

USAGE SUMMARY

"price cap" is correct and can be used in written English.
For example, you could say "The government recently introduced a new price cap on essential goods to protect consumers during the pandemic."

✓ Grammatically correct

News & Media

Science

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

59 human-written examples

Will a price cap improve it?

The Guardian - Opinion

Another option is to impose a hard price cap.

The Economist

Energy Secretary Bill Richardson said he favored a price cap.

The New York Times

The price cap can be changed if conditions warrant it.

The New York Times

He won't [expletive] play this price cap [expletive].

The New York Times

We tasted 20 bottles from the 2007 vintage, all under a $100 price cap.

The New York Times

That price cap will be lowered to 80 cents on Friday.

The New York Times - Tech

Whether she eventually supports a retail price cap on data roaming remains to be seen.

The New York Times

For this tasting, we set a price cap of $50 a bottle.

The New York Times - Food

Energy groups rallied strongly, as a price cap on bills is now unlikely.

Independent

The price cap exists, she explained, to keep newsstands from growing into minimarts.

The New York Times

Expert writing Tips

Best practice

When discussing economic policy, clarify the specific sector or product to which the "price cap" applies (e.g., "a price cap on energy bills").

Common error

Do not assume the audience understands the implications of a "price cap" without providing context. Explain its potential effects on supply, demand, and market competition.

Linguistic Context

The phrase "price cap" functions primarily as a noun, often acting as a subject or object within a sentence. Ludwig shows that it's used to describe a limit imposed on the price of goods or services. This noun often modifies another noun, such as "energy price cap."

Expression frequency: Very common

Frequent in

News & Media

60%

Science

25%

Formal & Business

10%

Less common in

Encyclopedias

0%

Wiki

0%

Reference

0%

Ludwig's WRAP-UP

The term "price cap" is a frequently used noun phrase, primarily functioning to describe a government-imposed limit on how high a price can be charged for a product or service. Ludwig confirms its grammatical correctness and widespread usage across various reputable sources. Its contexts are prevalent in news, science, and formal business communications. When writing about "price cap", be specific about the sector and potential effects, which according to Ludwig, enhance clarity and precision.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

maximum price

Replaces "cap" with "maximum", emphasizing the highest permissible price.

price ceiling

Uses a different term for 'cap', but retains the core meaning of an upper limit.

capped price

Uses 'capped' as an adjective to directly modify 'price'.

upper price limit

More descriptive, specifying that the limit is on the upper end of the price range.

maximum allowable price

Adds the element of permissibility, suggesting the price is officially sanctioned.

controlled price

Focuses on the control aspect, implying that the price is being regulated.

regulated price

Similar to "controlled price", but highlights the regulatory aspect.

price control

A broader term that includes various methods of influencing prices, including caps.

price freeze

Indicates a temporary halt to price increases at a specific level.

price stabilization

Focuses on the act of maintaining price stability, often involving price limits.

FAQs

What does "price cap" mean in economics?

In economics, a "price cap" refers to a government-imposed limit on how high a price can be charged for a product or service. It is often used to control prices in industries with limited competition or during times of crisis.

How does a "price cap" affect consumers?

A "price cap" can protect consumers from excessively high prices, but it may also lead to shortages if the cap is set too low, discouraging suppliers from producing enough goods or services.

What are the advantages and disadvantages of using a "price cap"?

Advantages include affordability and protection for consumers. Disadvantages may include reduced supply, decreased investment in the industry, and potential for black markets. Alternatives include "subsidies" or "regulation" to address market failures.

What's the difference between a "price cap" and a price floor?

A "price cap" sets a maximum price, preventing prices from rising above a certain level. A price floor sets a minimum price, preventing prices from falling below a certain level. They are opposite policies with different goals and effects.