GOVERNMENT PARTICIPATION IN IDENTIFYING EFFECTS OF PRICE DISTRIBUTION AND ITS EFFECTS

So as to ensure the enthusiasm of buyers government fixes the most extreme cost of the item. This greatest cost
is by and large lower than the harmony cost. This is called control cost or maximum price tag. This cost is fixed
by the legislature since needy individuals can't stand to purchase the item at balance cost. This circumstance
emerges when the creation of a product is not as much as its interest. As the cost of the ware fixed by the
legislature is not exactly the harmony value, it might make abundance request of the product which implies the
purchasers are happy to purchase more than what the vendors are eager to sell. In order to protect the interest
of consumers government fixes the maximum price of the commodity. This maximum price is generally lower
than the equilibrium price. This is called control price or ceiling price.