How does government intervention in the market affect the equilibrium price and quantity when the demand for a product is elastic?

When the demand for a product is elastic, it means that consumers are very sensitive to changes in price. If the government intervenes by setting a price ceiling, which is the maximum price a seller can charge, the price may drop below the equilibrium level. This can lead to a higher quantity demanded because more people want to buy the product at the lower price, but it can also cause a shortage since suppliers may not want to produce as much at that price. For example, if the government sets a price ceiling on bread, many more people might want to buy it, but bakers may not find it profitable to make enough bread, leading to empty shelves. Therefore, government actions can disrupt the balance between supply and demand, affecting both the price and the quantity of goods available in the market.