Explain why equilibrium of supply and demand is desirable


Discussion:

You have been assigned to a team that has the responsibility of preparing a paper consisting of 1,750 words for the governor's next economic conference. Your paper should address the following:

• Explain why equilibrium of supply and demand is desirable.

• Explain the following concepts using the concept of consumer and producer surplus:

o Efficiency of markets

o Costs of taxation

o Benefits of international trade

• Discuss how externalities may prevent market equilibrium and the various governments policies used to remedy the inefficiencies in markets caused by externalities.

• Analyze the difference between the efficiency of a tax system and the equity of a tax system as it refers to the costs imposed on taxpayers using the benefits principles.

Solution Preview :

Prepared by a verified Expert
Microeconomics: Explain why equilibrium of supply and demand is desirable
Reference No:- TGS01873875

Now Priced at $20 (50% Discount)

Recommended (93%)

Rated (4.5/5)