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?

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Definitions:

Empowerment

The process of giving individuals or groups more power and control over their lives or work, often leading to increased autonomy and participation in decision-making.

Individualized

Tailored or customized to meet the specific needs or preferences of an individual.

Zone of Tolerance

The range within which customers are willing to accept variations in service delivery and quality.

Voice-of-customer Quotient

A metric or approach that measures the extent to which a company's products or services align with the expectations and needs of its customers.