Chapter 4 - 09.28.12 - 1 Chapter 4 Main objective Explain consequences of government interventions(1 price ceilings and price floors(2 excise taxes

Chapter 4 - 09.28.12 - 1 Chapter 4 Main objective Explain...

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1 Chapter 4 Main objective: Explain consequences of government interventions (1) price ceilings and price floors (2) excise taxes Recall the market for eggs: Excess Demand for Eggs 0 0.1 0.2 0.3 0.4 0.5 0 1 2 3 4 5 6 7 8 Q P