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| 1. |
When does government intervene to fix maximum price of commodity (Price ceiling) ? |
| Answer» <html><body><p><br/></p>Solution :Government resorts to price-ceiling when it is <a href="https://interviewquestions.tuteehub.com/tag/considered-7257760" style="font-weight:bold;" target="_blank" title="Click to know more about CONSIDERED">CONSIDERED</a> that the market equilibrium price is too <a href="https://interviewquestions.tuteehub.com/tag/high-479925" style="font-weight:bold;" target="_blank" title="Click to know more about HIGH">HIGH</a> in <a href="https://interviewquestions.tuteehub.com/tag/comparision-925408" style="font-weight:bold;" target="_blank" title="Click to know more about COMPARISION">COMPARISION</a> to the desired level and is beyond the reach of a common <a href="https://interviewquestions.tuteehub.com/tag/man-1085541" style="font-weight:bold;" target="_blank" title="Click to know more about MAN">MAN</a>. In order to protect the interest of buyers, government <a href="https://interviewquestions.tuteehub.com/tag/undertakes-7720265" style="font-weight:bold;" target="_blank" title="Click to know more about UNDERTAKES">UNDERTAKES</a> this option in case of necessary goods like food items,medicines, hourse rents etc. This exercise by the government is undertaken in times of decline in the availability of goods or shortages.</body></html> | |