Business

When does it make sense for government to interfere with a pure market outcome?


Answers

nutella

2 years ago Comment

There are several situations when the government has to interfere with a pure market outcome. If the price of a product rises without any significant cause or if there is more supply than demand of a market, then the government can put a price ceiling or floor price of a product. This is purely to keep the economy of a country or state stable.