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 one negative effect of imposing a price floor above equilibrium price.
Describe one way in which government intervention can lead to market inefficiency.
Describe one way in which subsidies can distort the price mechanism.
Describe the effect of a price floor on the market for wheat if set above the equilibrium price.
Explain how government intervention in the price mechanism can help correct market failure.
Explain how subsidies can affect the price mechanism.
Explain the difference between a price ceiling and a price floor.
Explain the impact of a price ceiling on consumer and producer surplus.
Explain the term 'black market' in the context of price controls.
Explain why a price ceiling may lead to the emergence of a black market.
If the government sets a price ceiling on onions at Rs. 20 per kg, but the equilibrium price is Rs. 30 per kg, what is likely to happen?
State one disadvantage of government intervention in the price mechanism.
State one example of government intervention in the Indian agricultural market.
State one reason why the government may impose a price ceiling.
The government imposes a maximum price on essential medicines. What is this intervention called?
What is meant by government intervention in the price mechanism?
What is the main objective of imposing a price ceiling on essential commodities?
