Question

Government's Role in Price Determination & Equilibrium Analysis

Answer 1

Government's Role in Price Determination & Equilibrium Analysis is as follows:

• Government enforces the restrictions on price which is charged for services and goods  in market.
• In nation, smooth economy is maintained by distribution and regulating price.
• Into equilibrium, a market price settles. The buyer and seller get the assurance of getting things at the price they want by the equilibrium price.