Explain why equilibrium of supply and demand is desirable


Assignment

This is a group paper I am only responsible for the highlighted portion and need only about 400-500 words.

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:

o Efficiency of markets
o Costs of taxation
o Benefits of international trade

• Discuss how externalities may prevent market equilibrium and the various governments policies 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, not including your textbook.

Format consistent with APA guidelines.

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Business Management: Explain why equilibrium of supply and demand is desirable
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