IntroductionAcross the world, governments primarily intervene in the market in order to achieve their policy goals. The government's policy objectives or goals could be related to the economy, ranging from stabilizing prices to promoting exports, encouraging equal distribution of income and protecting basic commodities. The above examples prove that government intervention is not only limited to economic effects and also influences society. There are two (2) types of generally regulated government interventions, which are automatic and discretionary. Automation can be defined as an intervention based on rules and regulations. On the other hand, discretionary government interventions are primarily aimed at stopping, suspending or limiting a certain contract market. Apart from this, most government interventions occur when the market largely affects future markets or total liquidity. Some examples of interventions are price controls, direct purchase of buffer stocks, customs duties, embargoes, quotas as well as the implementation of policies that impact prices. An initial examination of government market interventions shows that discretionary interventions generally fail to achieve the targeted policy objective compared to discretionary interventions. rule-based interventions, as these are more effective in a market economy. At the same time, discretionary interventions yield undesirable results that could be very harmful and costly for the government. The harmfulness of this aspect can be defined as the total impact on those involved in the marketing or production of the commodity. Concerns Over Government Intervention Government concern over market inflation assumptions and rates is not entirely unusual middle of paper. ....... In such cases, the supply shift will shift vertically through the careful measurement of the tax imposed. In this way, if the government imposed a tax of RM1 on each pack of cigarettes and the cigarette sellers had to pass this charge will be passed on to the buyers, then the supply curve will increase by RM1. (Note that the RM1 movement is the vertical separation between the pre-tax and post-tax turns). The net effect is that, whatever the value, stores will carry fewer packs of cigarettes, to compensate for the additional expense of the price. As a result, if customers are to manage their previous usage levels, cigarettes could now require RM1 more for each pack. Again, the new harmony indicates that the costs will be in the middle of p and (p+1), and that the new amount will be less than the introductory amount. We can understand how this plays out with the diagram below.