Prepare You have been assigned to a team that has the responsibility of preparing a 15-20 PPP slides to analyze the current market conditions. Address the following topics: (You need to address each bullet point in a separate slide and include your major points in the slides.) Explain why equilibrium of supply and demand is desirable. Explain the following concepts using the concept of consumer and producer surplus: Efficiency of markets Costs of taxation
Purpose of Assignment In Week 2, students will employ the supply and demand model to develop consumer surplus and producer surplus as a measure of welfare and market efficiency. Students learn about welfare economics–the study of how the allocation of resources affects economic well-being–and will discover that under most circumstances, the equilibrium price and quantity […]