When Market Participants Are Allowed Through Their Interactions to Find

question 148

Essay

When market participants are allowed through their interactions to find the price,there will be equilibrium where the quantity supplied by buyers equals the quantity supplied by sellers.If this is the case,why does the government intervene in certain markets by imposing a price floor? Why does the government intervene in certain markets by imposing a price ceiling? Which market participant (the buyer or the seller)will lobby the government to secure passage of a binding price floor? Which one will lobby for a binding price ceiling?

---

Definitions:

Private Text Messages

Personal or confidential messages sent between individuals or within groups via electronic messaging platforms, typically seen only by the intended recipients.

Omitting Truth

The act of deliberately not sharing certain true information, which can lead to misunderstandings or misconceptions, often used to avoid conflict or protect someone's feelings.

Blemishes of Character

Minor or major flaws within an individual's moral or ethical compass, often affecting their social image or self-perception.

Widely Understood Rules

Norms, guidelines, or principles that are generally accepted and recognized by a large group of people.