Describe the distributional implications of the policy. Who gains and who loses? In your answer consider the economic incidence of the public intervention.

Choose an example of a government intervention into markets that you are familiar with. In this memo, you will be asked to describe the intervention and give arguments for and against the intervention.
You should address the following question in your memo:
1. In opposing the market intervention, start from the proposition that the market in
question meets the textbook definition of a competitive market. Explain why this
intervention is likely to be harmful under these assumptions .
2. In supporting the market intervention, you should use the economic rationale for
public intervention in the market. Give the best possible justification you can based on
the economics of the question, even if you don’t support the
intervention. You can also describe non-economic reasons why the policy is desirable,
but this cannot come instead of the economic rationale.
3. Describe the distributional implications of the policy. Who gains and who loses? In
your answer consider the economic incidence of the public intervention.