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Unformatted text preview: Change in quantity supplied (price) vs. change in supply (determinants of supply) Market demand vs individual demand Market supply vs individual supply Market mechanism and invisible hand of the market Market surpluses and shortages from price ceilings and floors Figures 3.7 Chapter 4 Production possibilities curve (PPC) Optimal mix of output as shown on PPC Market failure as shown on PPC Market failure wrong mix of output, uneven distribution of output Causes of market failure public goods and free rider problem, externalities, market power, inequity Social demand Government failure when government policies dont have desired effect or outcome Different types of taxation...
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