Question

Discussion one topic in microeconomics that you have learned that interested you the most. What did you find interesting about the topic? Why?

Pick one of these topics below

1: Tax incidence and price controls was the most

2: Government tax policies and how they relate to elasticities, government set price ceilings and price floors.

3: Concept of the market system

Answer 1

1.The topic that relates to tax incidence and price controls interests me the most. The way the taxes are levied on one group of people but shared by others too is interesting. Also, the concept of price controls like price ceiling and price floor is something that excites me, mainly because it relates to the functioning of the government and how the government works to protect the welfare of the people.

A price ceiling is the maximum price that a producer is allowed to charge from a consumer. It is basically imposed for food and energy products.

A price floor is the minimum price that must be charged by producers to consumers. It is basically imposed by the government to protect the interests of under resourced groups like farmers.

The works done by government for it's people is always something that keeps me interested.