When market participants are allowed through their interactions to find the price, there will be equilibrium...

When market participants are allowed through their interactions to find the price, there will be equilibrium where the quantity supplied by buyers equals the quantity supplied by sellers. If this is the case, why might the government intervene in certain markets where externalities exist? Please give reasoning for both a positive and a negative externality. Why might the government intervene in the case where the good is a public good?

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Rahul Sunny answered 1 month ago

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