When does government intervene to fix maximum price of commodity (Pric

1.	When does government intervene to fix maximum price of commodity (Price ceiling) ?
Answer» Solution :Government resorts to price-ceiling when it is CONSIDERED that the market equilibrium price is too HIGH in COMPARISION to the desired level and is beyond the reach of a common MAN. In order to protect the interest of buyers, government UNDERTAKES 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.

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