Which term refers to the pricing strategy that allows goods to be priced at a maximum level?

The term that refers to the pricing strategy allowing goods to be priced at a maximum level is known as a price ceiling. A price ceiling is an upper limit set by regulation on how high a price can be charged for a product or service. It is typically implemented by governments to ensure that essential goods remain affordable for consumers, especially in markets where prices may otherwise be driven up by demand or other market forces.

By establishing a maximum price, a price ceiling can help to prevent exploitation of consumers, particularly in situations where there may be limited competition. The effectiveness and enforcement of price ceilings can vary, and while they aim to make essential goods accessible, they can also lead to unintended consequences, such as shortages if producers are reluctant to supply goods at the lower price set by the ceiling.

In contrast, price confirmation generally relates to verifying pricing with customers or stakeholders; price elasticity measures the responsiveness of demand to price changes; and price limit, while a somewhat related concept, does not specifically define a regulatory maximum price like a price ceiling does. Hence, the correct term for a maximum allowable price in this context is indeed price ceiling.