Answer to Question #146195 in Microeconomics for Bob Dylan

Question

Is it ever okay for the government to regulate prices?

Answer 1

Definitely yes. This is because, through government price regulation measures, there is a maintained affordability of goods even during their shortages in the market. It also slows down inflation and ensuring minimum income for such providers and this helps achieve a living wage.

Government ensures the profitability level is not in excess.