Course Objectives for Chapter 4: Economic Efficiency, Government Price Setting, and Taxes
Students should be able to:
· Define the concepts of consumer surplus and producer surplus.
· Explain the concept of economic efficiency, and use a graph to illustrate how economic efficiency is reduced when a market is not in competitive equilibrium.
· Use demand and supply graphs to analyze the economic impact of price ceilings and floors.
· Use demand and supply graphs to analyze the economic impact of taxes