Government legislation and regulation Governments often regulate the production and supply of certain goods There are or the behaviour of firms. The main reason for doing this is to protect citizens from being harmed or cheated. Some economists object to this since, according to the principles of a free market, consumers and producers should have the freedom to decide what to buy and sell. The problem here is that certain goods can cause harm to people and their sale needs to be regulated. For instance, cigarettes and alcohol cannot be sold to minors. Similarly, some medicines cannot be sold without a doctor's certificate. Some chemical fertilizers, which were found to contain carcinogens, have been banned. In these cases government intervention is necessary to protect the welfare of the people.