Command System and Market Economies Discussion

Discuss the different factors of supply and demand such as changes in the price of inputs for labor, manufacturing, raw materials, recessions and cost of labor.

How do different market structures, such as the Command System and Market Economies, affect supply, demand and prices?

  1. How does government policies like taxes impact businesses and the consumer?

Define price ceiling and give an example. Then explain what happens when the price is above equilibrium.

Define price floor and give an example. Then explain what happens when the price is below equilibrium.

Externalities pose economic policy challenges for policymakers when businesses do not carry the true cost of production. Since negative externalities impact individuals and households who had no role in its making, is there a role for government intervention? How?

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