Market failures and generate a. create monopolies or oligopolies; deadweight loss b. create deadweight loss; externalities c. compel the government to act; regulations d. reduce economic efficiency; deadweight loss

D. reduce economic efficiency; deadweight loss

Explanation:

Market failures are produced when in a free market context, individual decisions for the allocance of resources is inefficient, and produces deadweight loss, an economic measure of social welfare. This situation justifies in some cases government interventions. The most common tools for intervention are taxes, subsidies or price regulation.

they work in some type of way

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.