One of the reasons of the government's involvement in business activities is to regulate demand and supply of commodities. In what ways may the government cause a decrease in the supply of a commodity?

      

Explain ways through which the government may cause a decrease in the supply of a commodity.

  

Answers


Maurice
(i) Withdrawal of subsidies.

(ii) Withdrawal/ cancelling of licences.

(iii) High taxation.

(iv) Price control.

(v) Quotas/ quantity restrictions.
maurice.mutuku answered the question on July 8, 2017 at 08:02


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