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Government Tools (Regulations)
Transcript of Government Tools (Regulations)
Other problems that affect citizens Loose government regulations increase the supply
However, strict regulations decrease supply. Prohibition-The manufacture, transportation, import, export and sales of alcoholic beverages is restricted or illegal. During the Prohibition period, Bootlegger's illegal sales of alcohol increased, because the government made regulations against selling alcohol. As a result of Prohibition the legal alcohol decreased. Strict pollution controls force companies to spend
more money on finding safe ways to dispose of
waste and toxic materials.
Complying with regulations thus increases company
production costs. Higher production costs prevents
producers from supplying as many good and services.