By reducing government intervention, buyers and sellers can affect shortages and surpluses of goods and services. Government intervention often includes regulations and policies that can either restrict or enhance the production and distribution of goods and services. By reducing government intervention, buyers and sellers have more freedom to determine their own production and consumption decisions, which can help to alleviate shortages or surpluses in the market. For example, if government regulations are lifted or reduced, sellers can increase their production to meet the increased demand from buyers, which can alleviate shortages. Likewise, if government regulations that restrict imports are reduced, buyers have access to a larger market and a greater variety of goods, reducing the possibility of surpluses. Therefore, reducing government intervention can help buyers and sellers to coordinate their actions more effectively and reduce the likelihood of shortages and surpluses.
