What is regulation in an economic system?

Imposition of rules by government backed by the use of penalties that are intended specifically to modify the economic behavior of individuals and firms in the private sector.

Explanation:

An imposition of rules by the government to modify the individual's economic behavior and in the private sector firm known as regulation. Prices, output, rate of return, disclosure of information, standards and ownership ceilings are among those frequently used.  One is to increase efficiency and maintain potential market power or avoid duplication. In the case of professional services, to protect consumers and maintain quality and protect consumers.