Micro-econ

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jj74

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Markets and the Economics of the Public Sector

Assignment Steps

Scenario: Imagine you have been assigned the responsibility of preparing a paper for the governor's next economic conference.

Prepare a 1,050-word paper addressing the following:

  • 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
    • 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.

Cite a minimum of three peer-reviewed sources, not including your textbook.

Format consistent with APA guidelines.

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Running head: MARKETS AND THE PUBLIC-SECTOR ECONOMICS

Markets and the Public-Sector Economics
Name
Course Title
Instructor
Date

Markets and the Public-Sector Economics

1

Markets and the Public-Sector Economics
The economists of public sector examine the response that governments provide when the
market experiences some failure. It does that by determining the influence that the government
has on the enhancement of economy. Through it, the importance of supply and demand, the
elements of the efficiency of contracts, taxation matters as well as the rationale behind
international trade can be discussed.
Supply and Demand Market Equilibrium
Farmers can be helped to advertise their products such as fruits and vegetables through a
roadside stand. The deficiencies in produce can be combatted by increasing the price during the
low season and increasing it during the high season (Sadowsky, 1994). When the demand and
supply curve is plotted, the supply curve moves upward while the demand curve moves
downward. As such, the equilibrium point is reached when the demand becomes equal to supply.
That phenomenon is usually referred to as market equilibrium. Moreover, a fair market
phenomenon is generally realized when the number of quantities purchased is equal to
equilibrium amount with the price being...


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