Question

How does the government affect the supply and demand of a market?

Answer 1

Answer:

Price controls can also distort the effect of supply and demand on a market. Governments sometimes set a maximum or a minimum price for a product or service, and this results in either the supply or the demand being artificially inflated or deflated.

Explanation:

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Answer 2

“ If the government increases the tax on a good, that shifts the supply curve to the left, the consumer price increases, and sellers price decreases. A tax increase does not affect the demand curve, nor does it make supply or demand more or less elastic”