Students will employ the supply and demand model to develop consumer surplus and producer surplus
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 is also the one that maximizes welfare. Students will review different sources of externalities and a variety of potential cures and will see that, while markets are usually a good way to organize economic activity, governments can sometimes improve market outcomes. Students will see how the U.S. government raises and spends money and the difficulty of making a tax system both efficient and equitable.
Assignment Steps
Scenario: Imagine you have been assigned to a team that has the responsibility of briefing the governor for an economic conference.
Download the MS Word document entitled Table for Week 2 Assignment, which is posted in this assignment.
Complete the blank cells in the table that is included in the document Table for Week 2 Assignment.
Cite a minimum of three peer-reviewed sources. Please note: You can use quotes and paraphrases from the textbook for one of those three peer-reviewed sources.
Please note: Your grade on this assignment will be based on the content of your answers, on your in-text citations, and on your references list. Your grammar, punctuation, spelling, and other writing mechanics will not be graded, but you might lose points if your answers are unintelligible.
Again, the only APA formatting that is required are: (1) in-text citations for all quotes and paraphrases and (2) a reference list.
…………………Answer preview………………………
The point in which the supply curve and demand curve intersect is referred to the equilibrium of supply and demand. The equilibrium point is very desirable in the economics sense since, at that point, the number of goods and services that are being supplied are equal to the goods and services that…………………………….
APA
1304 words
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