If the government wants to manipulate the equilibrium price,it will normally create a price floor or price ceiling;if the government want to manipulate the equilibrium quantity,it will normally impose taxes or award subsidies.

Question

Quizplus · Accepted Answer

Price floors and ceilings directly affect prices, while taxes and subsidies influence the quantity by altering supply and demand dynamics.

If the Government Wants to Manipulate the Equilibrium Price,it Will