Government rules can sometimes mess up how markets work. This can cause problems for buyers and sellers.

Let’s break it down:

1. Price Controls:

   • When the government sets a maximum price (called a price ceiling), it can lead to shortages. This means there isn’t enough of a product for everyone who wants it.
   • When there’s a minimum price (called a price floor), it can cause too much of a product. This means there’s more than people want to buy.

2. Taxes and Subsidies:

   • Taxes can make it more expensive to make things. This can lower the number of products available and increase prices for buyers.
   • Subsidies are like financial help for businesses. Sometimes, they can lead to money being spent in the wrong areas.

Solution: To make things better, change rules slowly and check how they affect the market. This way, the market can adjust without causing too many problems.