Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
To eliminate competition
B
To ensure fair pricing
C
To monopolize the market
D
To increase supply without demand
Understanding the Answer
Let's break down why this is correct
Answer
The primary purpose of government intervention in a market is to help achieve equilibrium, which is the point where supply and demand meet. Sometimes, markets can become unbalanced, leading to either shortages or surpluses. For example, if there is a sudden increase in demand for a product like bread but the supply remains the same, the price may rise too high, making it unaffordable for some people. The government might step in by providing subsidies to bread makers, encouraging them to produce more bread, which helps lower prices and balance the market. Ultimately, government actions aim to ensure that everyone can access essential goods and services, promoting fairness and stability in the economy.
Detailed Explanation
The main goal of government action is to make sure prices are fair for everyone. Other options are incorrect because Some might think the government wants to stop competition; It may seem like the government wants to control everything.
Key Concepts
government intervention
Topic
Analyzing Market Equilibrium
Difficulty
easy level question
Cognitive Level
understand
Ready to Master More Topics?
Join thousands of students using Seekh's interactive learning platform to excel in their studies with personalized practice and detailed explanations.