Author(s)

Zijian Xu

Corresponding Author

Zijian Xu

Abstract

The paper classifies the social product or services into four types according to the availability and acceptability, and analyzes the equilibrium price changes of different products. On the basis of this, the market mechanism is further explained that the price of the product or services often deviates from the value, namely market failure. Therefore, this paper draws a conclusion that the price is not a simple market issue. It cannot be solved by the market mechanism alone and we must pull in the government intervention mechanism to make them work together on the price of labor.

Keywords

Product types, Labor price, Value, Government intervention mechanism