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Why would the government wish to control the price of a commodity below the market equilibrium price?
Wiki User
∙ 11y ago
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.
Wiki User
∙ 11y ago
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What is the market equilibrium?
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.
Why might a government intervene in the market economy?
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.
What is minimum price legislation?
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.
What is Market equilibrium?
Market equilibrium is this situation when market demand is equal of market supply
What happens on equilibrium price when the government impose tax on goods?
if there is equilibrium in the market and the govt. fixes the price then there would be the dead weight loss.
What is the market equilibrium?
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.
Why might a government intervene in the market economy?
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 which segment you have trade for profit?
In commodity market, the segment that you have trade for profit is the commodity segment.
What is minimum price legislation?
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.
Which is the largest commodity exchange for commodity market?
Oil is that commodity.
What is Market equilibrium?
Market equilibrium is this situation when market demand is equal of market supply
What happens on equilibrium price when the government impose tax on goods?
if there is equilibrium in the market and the govt. fixes the price then there would be the dead weight loss.
What is a commodity market?
Volatile market
What is the role of the government in the market structure?
the role of the government in the market structure is to control inflection
When is us Commodity market will open today?
BY 5 pm today commodity market will open
Which is the most moving share in commodity market?
Equity share is the most moving share in commodity market.
What is the meaning of monopolies?
Monopoly is the control of a commodity or service in a particular market or the manipulation of prices. The control is exclusive.
