This preview shows page 1. Sign up to view the full content.
Unformatted text preview: satisfied. There is no need for the government to participate. However, the government sometimes intervenes because it feels that it should benefit either the buyer(s) or the seller(s). When the government intervenes, equilibrium is prevented from being reached and we just have to accept it. Please read the sections on price ceilings, price floors, quantity restrictions, and third-party-payer markets. These are situations that we are familiar with and it is interesting to interpret them from an economic view....
View Full Document
- Fall '11
- Supply And Demand