Final answer:
Governments may intervene in markets to prevent prices from becoming too high or too low, often for political or social reasons. This intervention can affect market outcomes, but cannot alter the fundamental laws of demand and supply.
Step-by-step explanation:
When studying markets, we generally start with the premise that they are free and without government intervention. However, governments may step in to control market outcomes for various reasons, such as political or social concerns. This often involves attempting to prevent prices from rising too high or falling too low, which can have various effects on the economy.
Notably, while governments can set price limits, they cannot control the fundamental laws of demand and supply. Trade policy is one area where governments might attempt to influence economic outcomes, although they cannot prevent those laws from manifesting in other ways. Price controls can lead to controversial outcomes, especially for products deemed necessary, where political pressure may lead to legislation to control prices.