Why does the government fix the price of a commodity higher than the equilibrium price?
Answers
Answered by
2
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.
mark as brainest
Similar questions