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Economics Discuss how externalities may prevent market
magine 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:
o Efficiency of markets
o Costs of taxation
o 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.
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