2.3 Government control
The government controls and fixes the price for certain goods and
services .However ,the government merely determines the price, not the price
mechanism . Basically there are two types of price controls- the maximum price and
the minimum price. Maximum price is the price that seller may charge for goods or
services .The maximum price is also referred to as the ceiling price. Maximum price
is a government-imposed regulation that prevents certain prices from rising above a
maximum level as set by the government .
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P(RM)
