seven_eric

This review examines how market equilibrium is
affected by price ceilings, minimum wages, tax es,
subsidies, quotas, and trade in illegal goods. For each
of these you should know how supply, demand, and
the resulting market equilibrium price and qu antity
are affecte d. Understand why economists believe that,
in general, interference with market forces causes
economic inefficiency (an inefficient allocat ion of
resources).