Mixed Economy system is a market system that involves planned economy and market economy, it basically involves government and private firms intervention

Certain things in mixed economy are managed by the government while certain things are managed by the private firms

Government produce public schools, hospitals, libraries and etc, private firms produce products and other services through incentives while government does it for people

Maximum Price

• Maximum price is a method of controlling market failure, maximum price occurs when the price of the product is set below the equilibrium.

• Maximum Price is used as the products should be more affordable for the people to buy and to also increase the consumption of the product

Minimum Price

• Minimum price is a method of controlling market failure, it basically occurs when the price of a product is set above the equilibrium

• Minimum price is used for the suppliers incentive, when the price is increased the supply increases and when the profit is framed good then the incentives of the supplier increases, example : farmer producing crops

Indirect Taxation

• Indirect taxation is one of the ways to stop market failure as this is one of the major ways to stop demerit goods from being produced

• This decreases the consumption of demerit goods

• Government uses maximum price and minimum price to stop market failure