What is the nature of government inervention which leads to excess dem

1.	What is the nature of government inervention which leads to excess demand ?
Answer» Solution :The nature of government INTERVENTION which leads to excess demand is called price ceiling. In which, the government INTERVENES in the market if it feels that the price is too HIGH for the consumers. Government fixes the maximum price which is less than the equilibrium price on which the producers are allowed to sell their goods and services. Since, this price is less than the equilibrium price it creates excess demand on that very level.

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