Point 4 chime in Graph -Society Welfare is maximised -Supply = Demand -Allocative efficiency is achieved -Any other measurement other than Point 5 Governments recognize that on any(prenominal) occasion that the theoretical model may not achieve the candidness that a civil society needs in articulate to be able to function/ -They may introduce price ceilings and floors, and delve options to allocate scarce goods (price ceilings) and services or dish up with plain fork up (price floors). -They may introduce subsidies and gross revenue tax on production and at the said(prenominal) time be heedful how the elasticity of demand of fork over effect who pays what proportio n of the proposed sales tax Point 6 Pric! e controls: a good may introduce a price ceiling, a legally enforced market price that is less than equilibrium market price. This would restore some honor in the market. Political thing. E.g. Rental Price GRAPH Point 7 Some possible alternatives to rent ceilings that might achieve inexpensive accommodation to a greater number of people, are; election 1: A supply-shift solution Government could development supply by building or financing the...If you neediness to hold up a full essay, order it on our website: OrderCustomPaper.com
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