Unit 2.7(2): Governments in markets - price controls

IB Economics: Unit 2.7(2): Governments in markets - price controls

In free markets where there is no government intervention the price and output in a market are determined by demand and supply. Government seeks to intervene in markets when market price and output does not maximise welfare in society. This could be a high price that negatively affects households on lower incomes or a low price that forces firms out of business in strategically important markets.The link to the attached...

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