Which situation requires government interference?

2 ⤊

Which situation requires government interference?

The demand for butter has decreased due to an increase in the price of margarine.

The demand for instant noodles has decreased with a rise in income.

The water of the Dale Lake is getting polluted due to factory wastes.

Teenagers are spending more hours watching television.

People above 40 years of age are reducing their working hours.

2007-03-14 04:37:45 · 2 answers · asked by stevie 1 in Social Science ➔ Economics

2 answers

Santa is correct because the cost of pollution is not included when the factory decides how much to produce and when it's customers decide how much to buy.

2007-03-14 10:16:17 · answer #1 · answered by uncle frosty 4 · 1⤊ 0⤋

The water of the Dale Lake is getting polluted due to factory wastes.

2007-03-14 14:31:01 · answer #2 · answered by Santa Barbara 7 · 1⤊ 0⤋