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

1.	What is the nature of government inervention which leads to excess supply ?
Answer» <html><body><p><br/></p>Solution :The <a href="https://interviewquestions.tuteehub.com/tag/nature-1112013" style="font-weight:bold;" target="_blank" title="Click to know more about NATURE">NATURE</a> of government intervention which leads to excess supply is <a href="https://interviewquestions.tuteehub.com/tag/called-907796" style="font-weight:bold;" target="_blank" title="Click to know more about CALLED">CALLED</a> price floor. In which, the government intervenes in the market if it feels that the price is too low for the producers to <a href="https://interviewquestions.tuteehub.com/tag/sell-1200244" style="font-weight:bold;" target="_blank" title="Click to know more about SELL">SELL</a> their produce. Government fixes the minimum price which is greater than the equilibrium price on which the producers can sell their <a href="https://interviewquestions.tuteehub.com/tag/goods-1009877" style="font-weight:bold;" target="_blank" title="Click to know more about GOODS">GOODS</a> and services. Since, this price is higher than the equilibrium price it creates excess supply on that very level.</body></html>

What is the nature of government inervention which leads to excess supply ?