Government intervention and regulation are both normal goods.
Though this generalization has exceptions, the difference between the noregulation
iso-majority curve and the regulatory equilibrium (that is, the
incentive to regulate) grows with the level of demand. As a further generalization,
the income elasticity of producer protection ought to be less than
that of consumer protection. This follows from the negative wealth effect of
demand growth on equilibrium price, which makes for an increased consumer
share of the total surplus as demand (income) increases.