August 21, 2020

Market Efficiency, Consumer’s Surplus, and Producer’s Surplus

In economics, we believe that the equilibrium of supply and demand in the market maximizes the total benefits received by sellers and buyers. Similarly, the price that balances the supply and demand for the product is the best one as it maximizes the total welfare of consumers and sellers or producers. So, economists consider a […]

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Price Control Policies and their Effect in Market Equilibrium

If the market is free then there are no government interventions and prices and quantities adjust with the market forces of demand and supply. At the equilibrium price, the quantity that consumers are willing to buy exactly equals the quantity that sellers are ready to sell in the market. In economics, this is an efficient

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