Artificially keeping the price of a commodity below market value by governments (usually by selling massive quantities) is to try and achieve the appearance of a greater value in something else.
Market equilibrium comes at the price of a commodity for balancing the market forces like demand & supply.In market equilibrium the amount that the buyers want to buy equal to the amount that the sellers want to sell.The reason we call this equilibrium,when the forces of demand & supply are in balance, there is no reason for a price to rise or fall as long as other factors remain unchanged.At equilibrium, quantity demanded equals quantity supplied.
Essentially, due to market failure of some type: the market does not efficiently allocate some desirable commodity and the government attempts to correct this misallocation.
The minimum price legislation is the commodity sold at any price price below the one stated example government or authorities. The intention is to protect the supplier at times when the market id at equilibrium and price tends to fall (due surplus). To be effective, a minimum price must be set above prevailing current market equilibrium price. Also there should be no cheating.
Volatile market
if there is equilibrium in the market and the govt. fixes the price then there would be the dead weight loss.
Market equilibrium comes at the price of a commodity for balancing the market forces like demand & supply.In market equilibrium the amount that the buyers want to buy equal to the amount that the sellers want to sell.The reason we call this equilibrium,when the forces of demand & supply are in balance, there is no reason for a price to rise or fall as long as other factors remain unchanged.At equilibrium, quantity demanded equals quantity supplied.
Essentially, due to market failure of some type: the market does not efficiently allocate some desirable commodity and the government attempts to correct this misallocation.
In commodity market, the segment that you have trade for profit is the commodity segment.
Oil is that commodity.
The minimum price legislation is the commodity sold at any price price below the one stated example government or authorities. The intention is to protect the supplier at times when the market id at equilibrium and price tends to fall (due surplus). To be effective, a minimum price must be set above prevailing current market equilibrium price. Also there should be no cheating.
Volatile market
the role of the government in the market structure is to control inflection
Market equilibrium is this situation when market demand is equal of market supply
BY 5 pm today commodity market will open
if there is equilibrium in the market and the govt. fixes the price then there would be the dead weight loss.
Equity share is the most moving share in commodity market.
Market equilibrium is determined by the point where the quantity demanded by consumers equals the quantity supplied by producers. Factors involved in finding market equilibrium include price, demand, supply, and external influences such as government regulations and consumer preferences.