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...


To access the entire contents of this site, you need to log in or subscribe to it.

Click the free stuff button on the home page to access free pages or check the blog (which is also free)

All materials on this website are for the exclusive use of teachers and students at subscribing schools for the period of their subscription. Any unauthorised copying or posting of materials on other websites is an infringement of our copyright and could result in your account being blocked and legal action being taken against you.