Possible evaluative ideas for government intervention

Question 1

Minimum price

Answer 1

-Creates a burden on the poor because of higher selling price
-Cheaper subs may be more harmful
-More black market activity
-Could worsened inequalities

Question 2

Maximum price

Answer 2

-Shortages in the market
-Black market my be promoted due to excess demand

Question 3

Taxes

Answer 3

Difficult for government to know how much too charge (Too little or too much)

Question 4

Subsidies

Answer 4

Difficult for government to know how much to charge (too much-prices will be lowered too much causing shortages
too little-won’t help to actually lower their costs)