Compare and contrast the direct effects and indirect effects of government interventions. Please provide examples to substantiate your answer.

Direct effects of government interventions take effect immediately for example addition of levy on tobacco products has increased the prices by about 10%. Indirect effects do not take notable changes immediately, for example, a surge in the price of tobacco resulted in a decrease in consumption of that product by about 4% in the USA.

In both, the effects result in some changes in human behavior after some time. For the case of tobacco, we can assert that consumption rate and buying of tobacco products declined by around 4% in the USA.