You have been assigned to a team that has the responsibility of preparing a paper consisting of 1,750 words for the governor’s next economic conference. Your paper should address the following: Explain why equilibrium of supply and demand is desirable. Explain the following concepts using the concept of consumer and producer surplus: Efficiency of markets in terms of maximizing total economic surplus (i.e., the sum of consumer and producer surplus). Costs of taxes and subsidies in terms of creating economic inefficiency Benefits and costs of international trade from perspectives of consumers, business firms, and the government. Discuss how externalities may prevent market equilibrium and how the various governments policies could be used to remedy the inefficiencies in markets caused by externalities. Analyze the difference between the efficiency of a tax system and the equity of a tax system as it refers to the costs imposed on taxpayers using the benefits principles. Cite a minimum of 3 peer-reviewed sources,beyond your textbook.

 

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