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There are several examples of governments fixing prices. In terms of public utility prices, the State government will hear requests from utility companies for raising prices. The government will either approve the request, deny the request or negotiate a better price increase. The utility will have a State sanctioned monopoly where it does business.
Part and parcel with price fixing is setting the minimum wage laws. In a totally free economy, wages are paid either by union - management negotiations, or based on market conditions. The Federal & State governments "fix" the minimum wage rate. In some cases this means small employers who cannot afford a hike in the minimum wage will lay off workers or cancel plans to expand. On the other hand, minimum workers will see an increase in pay.
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When the government prevents prices from adjusting naturally to supply and demand?
Government regulation occurs when the government prevents prices from adjusting naturally to supply and demand.
What is the effect on the government when the economy is in decline?
prices rise
Who is gaining from the rise in oil and gas prices?
the government
What is the branch of government in charge of gas prices?
what ranch of government is in charge of the gas pices
Why a cut in government spending has a larger effect under a fixed exchange rate system and perfect capital mobility than in a closed economy?
fixed and floating exchange rates
The Statute of Workers was a measure to?
fixed wages and prices
What is the interest rate on a corporate bond?
The prices of corporate bonds fluctuate as they are traded on the bond market. Like government bonds, a corporate bond pays a fixed amount of interest each .
When the government prevents prices from adjusting naturally to supply and demand?
Government regulation occurs when the government prevents prices from adjusting naturally to supply and demand.
Who fixed the price in the market?
As far as i know the price is being fixed by the government only
When should the government and society step in to protect consumers?
3 times. First, when public health and safety is involved. Second, when the business's product or services does not deliver it promises. Third, when prices are fixed and there is no real competition.
What is customary pricing?
Prices of certain goods are more or less fixed in the minds of consumers; these are known as "Charm prices" . E.g. soft drinks.
Why does eBay sell in fixed prices too?
Not every body likes auction bidding.
Is the Government in charge of the gas prices?
3238
Is the government bond the same as the fixed income securities?
Fixed Income Securities are investments in which the income or interest earning is fixed and can be predicted accurately. Bonds & Debt Mutual funds would come under Fixed Income Securities. Government Bonds are also one among the many Fixed Income Securities available for us to invest.
What has the author Oliver Schlimm written?
Oliver Schlimm has written: 'The system of fixed prices in Germany'
Which purpose of government is served when the government sets the price of milk?
Economic stability is served when the government sets prices.
Who decides the petroleum prices in India?
government of india
