Role of Government in Determination of Price and Quantity

A price fixed by the government

A price fixed by the government instead of being left to free market forces. It can be below equilibrium price or above equilibrium price, depending o

The maximum price fixed by

The maximum price fixed by the government, generally below equilibrium price, to protect consumers. It is used when production is less than demand and

The minimum price fixed by

The minimum price fixed by the government, generally above equilibrium price, to protect producers, especially farmers. It assures farmers of a minimu

A very low price charged by

A very low price charged by government or private charitable institutions for necessary services such as medical, health, and education services. It i

A policy in which part

A policy in which part of the production is sold at control price through fair price shops and the remaining part is sold at market price. It helps re