chap.pptVIP

Supply, Demand and Government Policies Chapter 6 LEARNING OBJECTIVES: the effects of government policies that place a ceiling on prices. the effects of government policies that put a floor under prices. The effect of tax on market, buyers and suppliers Supply, Demand, and Government Policies In a free, unregulated market system, market forces establish equilibrium prices and exchange quantities. While equilibrium conditions may be efficient, it may be true that not everyone is satisfied. One of the roles of economists is to use their theories to assist in the development of policies. Price