Why governments intervene
Why governments intervene
Governments intervene when markets produce outcomes that harm consumers, workers, suppliers, or the wider public interest. A monopoly may charge high prices and restrict choice, while a powerful buyer may use monopsony power to force down wages or supplier prices.
Step-by-step lessons on Edexcel A A Level Economics 3.6.1 Government intervention. Each one builds up to exam-style questions. Start with the core supply-and-demand models before moving on to the more evaluation-heavy macroeconomic policy topics.