Answer:
In certain markets, what can be traded and how much is determined by not just market forces, but also by government mandates and negotiated agreements. For example:
Agricultural markets: The government may set production quotas, establish price floors or ceilings, and provide subsidies to support farmers. Agricultural trade agreements between countries may also impose tariffs, quotas, or other restrictions on the import and export of agricultural products.
Labor markets: Minimum wage laws, collective bargaining agreements, and regulations on working conditions can affect the terms of employment and compensation for workers. Immigration policies can also influence the availability of labor and the composition of the workforce.
Energy markets: Government agencies may regulate the production, distribution, and pricing of energy resources such as oil, natural gas, and electricity. International agreements may also limit the export or import of certain types of energy resources.
Environmental markets: Cap-and-trade systems, which set limits on the total amount of pollution that can be emitted by certain industries, allow companies to buy and sell permits to emit pollutants. This creates a market for pollution control and incentivizes companies to reduce their emissions.
In each of these examples, government mandates and negotiated agreements influence the terms of trade beyond the typical market forces of supply and demand.
Step-by-step explanation: