Question

what happens in the market if the government fixes a price less than the equilibrium price​

Answer 1

Explanation:

• As the price of the commodity fixed by the government is less than the equilibrium price, it may create excess demand of the commodity which means the buyers are willing to buy more than what the sellers are willing to sell.

Answer 2

Answer:

here's your answer

Explanation:

As the price of the commodity fixed by the government is less than the equilibrium price, it may create excess demand of the commodity which means the buyers are willing to buy more than what the sellers are willing to sell. ... Due to excess demand for the commodity at ceiling price government resorts to rationing