Explain why equilibrium of supply and demand is desirable

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Reference no: EM131292947

Markets and the Economics of the Public Sector

You have been assigned to a team that has the responsibility of preparing a paper consisting of 1,750 words for the governor's next economic conference. Your paper should address 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

Reference no: EM131292947

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