Introduction to microeconomics Essay Example | Topics and Well Written Essays - 250 words

Introduction to microeconomics - act ExampleBuyers have to wait in queues and this situation also does not guarantee that whether they go away seize the product when their number comes. Sellers of a product can also provide the goods and services to their favorite clients which violates the influence of efficient grocerys (Ceiling price regulation).Price Ceiling phenomenon reflects that government intervention does not necessarily means that market will operate efficiently and effectively. Price ceiling is a tool with which government intervenes only it has been observed that intervention is not beneficial in the extensive run. Economists are of the opinion that output generated through free market economy is the best possible outcome for the welfare of buyers and sellers in the market. Although general general might feel that they are getting goods and services at the lower prices therefore it is better for them unless they should also recognize that they are not going to get the product every time they will go to buy it. Price Ceiling creates severe shortage in the economy therefore it should be noted that government intervention is not the solution to the rising prices or inflation in the long