The mechanism which allows the price of a commodity to be fixed either above or below the equilibrium is known as

The mechanism which allows the price of a commodity to be fixed either above or below the equilibrium is known as "price control." Price control refers to government policies or regulations that set a specific price ceiling or floor for a particular commodity or service. When the government sets a price ceiling, it means that the price cannot be charged beyond a certain limit. This often results in a shortage of the commodity or service, as the quantity demanded exceeds the quantity supplied at the artificially low price. On the other hand, a price floor means that the price cannot fall below a certain level. This often leads to a surplus of the commodity or service, as the quantity supplied exceeds the quantity demanded at the artificially high price. Overall, price controls can lead to inefficiencies in the market and unintended consequences, such as black markets or decreased incentives for producers to supply the commodity or service.