When a government intervenes in a market, generally the result is:

Name: When a government intervenes in a market, generally the result is:
Brand: Quizplus
Rating: 4.7 (38 reviews)

Question

Quizplus · Accepted Answer

When a government intervenes in a market, it often leads to inefficiencies, such as overproduction or underproduction relative to the market equilibrium, which results in a deadweight loss. This loss represents the decrease in total surplus that occurs because the market output is not allocated efficiently.

When a Government Intervenes in a Market, Generally the Result