Can You Outline The Advantages And Disadvantages Of Government Intervention With Free Market Equilibrium Price?


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Hira Waqar answered
All economists have their own point of view when discussing the market in various stages of equilibrium. Some economists are strictly against government intervention. As subsidies and taxes imposed by the government disturb the market equilibrium prices and eventually cause the demand and supply curves to shift either inwards or outwards. On the contrary, government intervention has a lot of times proved to be extremely beneficial. Especially when the shortage of goods occur and people suffer from the limited amount of supply and high prices. Further information on the behaviour of market are  outlined in

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