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Market Prices
- Words:
- 372
- Submitted:
- Mon May 25 2009
- Mark submitted by Author:
Have a little read: ... Can governments control market prices? State your opinion and justify it by finding an article/link to back up your position. Even if you don't have a position still contribute as its worth 10 progress marks. I believe the Government can control market prices. Ways that this can be achieved by the Government include price ceilings (where the market price has a maximum that it can reach) and price floors (where the market price has a minimum that it can reach). The main reason for influencing prices in this way is to affect the distribution of income. Price ceilings will redistribute money from sellers to buyers, whereas price floors will redistribute money from buyers to sellers. I believe that we have a coherent government, and sometimes people are too quick to be critical of decisions made. The Government can intervene in Market Prices, however, sometimes large measures are needed to be taken
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