Introduction to Microeconomics Chapter 06: Supply, Demand and Government policies
Chapter 6 identifies externalities, markets with incomplete competition and political pressure (market outcomes perceived as unfair) as cases in which governments may decide to impose price controls or taxation. It shows that such interference always results in market imbalances between quantities supplied and demanded or in reduced market size. As regards taxation, chapter 6 also discusses tax incidence and elasticities.
Prof. Dr. Hiltgunt Fanning (Fachhochschule Stralsund)