Price ceiling is set below the equilibrium price (maximum price), basically lowering the price of certain goods in order to make these goods affordable for consumers. Price floor is set above the equilibrium price (minimum price), increasing the price of certain goods in order to protect the interest of certain unproductive sectors(producers). In short, price ceiling is the maximum price set by the government to protect the consumers while price floor is the minimum price also set by the government but to protect the producers.
Price Floor: is legally imposed minimum price on the
market. Transactions below this price is prohibited. Policy makers set floor
price above the market equilibrium price which they believed is too low. Price
floors are most often placed on markets for goods that are an important source
of income for the sellers, such as labor market. Price floor generate
surpluses on the market. Example: minimum wage.
Price
Ceiling: is legally imposed maximum price
on the market. Transactions above this price is prohibited. Policy makers set
ceiling price below the market equilibrium price which they believed is too
high. Intention of price ceiling is keeping stuff affordable for poor people.
Price ceiling generates shortages on the market. Example: Rent control.