Government Intervention in Price Mechanism
Economics ⇒ Government and the Economy
Government Intervention in Price Mechanism starts at 10 and continues till grade 12.
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Describe how a subsidy affects the supply curve of a product.
Describe one disadvantage of government intervention in the price mechanism.
Describe one way in which government intervention can promote social welfare.
Describe the impact of a price floor on the agricultural sector in India.
Explain how government intervention can help in reducing income inequality.
Explain how government intervention can lead to market distortions.
Explain the difference between a price ceiling and a price floor.
Explain the main objective of imposing a price ceiling on essential commodities.
Explain the term 'black market' in the context of price controls.
Explain why the government may impose a price ceiling during a natural disaster.
If the government sets a price ceiling on a good, what happens to the demand and supply of that good?
State one possible negative effect of a price ceiling.
State one reason why government intervention may fail to achieve its objectives.
The government sets a price ceiling on onions at Rs. 30 per kg, while the equilibrium price is Rs. 40 per kg. What is the likely outcome in the market?
What is meant by government intervention in the price mechanism?
What is the main purpose of a price floor?
