Category: 9. Market Failure

Price regulations are governmental measures dictating the quantities of a commodity to be sold at a specified price both in the retail marketplace and at other stages in the production process. These regulations act as control measures or emergency economic measures in the case of imperfect competition to prevent probable market failures. Table of Content [Show] Price…

What is Market Failure? In economics, Market failure occurs when there is an imbalance in the quantity of a product demanded and supplied, which leads to an inefficient allocation of resources. The success of the market is mainly dependent on the effective allocation of resources. However, there are situations when markets fail to allocate these resources efficiently, which…