Government intervention in markets aims to address market failures, abuse of market power, and improve equitable distribution of income and wealth. Some forms of intervention include price ceilings which place restrictions on prices rising above a certain level and can cause shortages. Price floors prevent prices from falling below a level and result in surpluses. Subsidies grant money to industries and lower prices for consumers while increasing revenue for producers. Quotas restrict the amount individual producers can produce and shift the supply curve left.
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