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The government can prevent the shortages that accompany price ceilings by doing what?
Wiki User
∙ 15y ago
Ration
Wiki User
∙ 15y ago
igotthatwap
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Why does a free market economy need government intervention?
Although free market economies are mostly based on the free choices of the buyers and consumers, one reason government intervention is needed is to prevent the creation of monopolies. If a monopoly is a natural monopoly or a monopoly that doesn't seem to make too much profit, it can be left alone, but if a monopoly has significant power and makes too much profit, government must restrict its market powers. Otherwise, the monopoly could control prices and output with no restrictions at all. Also, sometimes government must set price ceilings or price floors in order to try to fix the problems of shortages and surpluses. By setting these price levels, the government helps bring the price and quantity back to equilibrium position, where the quantity demanded = quantity supplied.
What is one way the government cannot prevent a budget deficit?
One way that the government cannot prevent a budget deficit is by selling stocks.
What is one way that the government cannot prevent a budget deficit?
One way that the government cannot prevent a budget deficit is by selling stocks.
Role of government in developing business enterprises?
to provide essential services.2,to prevent monopoly.3.to prevent foreign control of d economy
Which is not a way the government can make up for a budget deficit?
One way that the government cannot prevent a budget deficit is by selling stocks.
What type of energy helps prevent energy shortages?
There are no types of energy capable of preventing energy shortages.
During world war 2 the federal government reacted to shortages of various goods by?
Rationing. People had to get ration books for supplies to prevent hoarding.
What energy will help prevent energy shortages and allow fossill fuels to last longer?
manpower
What energy will help prevent energy shortages and allow fossil fuels to last longer?
manpower
Energy that will help prevent energy shortages and allow fossil fuels to last longer?
electrical energy
Why does a free market economy need government intervention?
Although free market economies are mostly based on the free choices of the buyers and consumers, one reason government intervention is needed is to prevent the creation of monopolies. If a monopoly is a natural monopoly or a monopoly that doesn't seem to make too much profit, it can be left alone, but if a monopoly has significant power and makes too much profit, government must restrict its market powers. Otherwise, the monopoly could control prices and output with no restrictions at all. Also, sometimes government must set price ceilings or price floors in order to try to fix the problems of shortages and surpluses. By setting these price levels, the government helps bring the price and quantity back to equilibrium position, where the quantity demanded = quantity supplied.
What are the steps taken by government to prevent earthquakes?
what are the steps to prevent earthquake
How did the Roman republic's government try to prevent revolts?
(as in how they tried to satisfy the Plebians and try to prevent them from uprising against the government)
How can government prevent damage from volcanoes?
You can not
What are the FAQs of food shortages?
Some facts are people are using to much for food and not saving it for left overs. a way to prevent it is eat less and use more.
What is one way that the government cannot prevent a budget deficit?
One way that the government cannot prevent a budget deficit is by selling stocks.
What is one way the government cannot prevent a budget deficit?
One way that the government cannot prevent a budget deficit is by selling stocks.
