Unit 1: Market failure in the car tyre market

An interesting clip from the BBC showing changing consumer behaviour in the recession

http://news.bbc.co.uk/1/hi/uk/8335214.stm

a) What form does government intervention take in the car tyre market?
b) Why does the government do this? In what way would a free market in tyres fail?
c) To what extent is the market failure increasing in the recession