Thursday, October 1, 2015

Chapter 6 talked a lot about how government can intervene and control prices. Consumers are rather ignorant and do not think about the current supply or demand for that good.  Chapter 6 shows us how both price ceilings and floors can affect the market. They can produce a shortage or surplus, depending on which one is applied.  This chapter also talked about taxes and how they are applicable to society.

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