The competitive market equilibrium maximizes gains from, Microeconomics

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The competitive market equilibrium maximizes gains from

Question: The competitive market equilibrium maximizes gains from trade. Taxes and subsidies, by altering the market outcome, reduce the gains from trade. Does this happen primarily because of the impact of taxes and subsidies on prices or the impact of taxes and subsidies on quantities?

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Microeconomics: The competitive market equilibrium maximizes gains from

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Microeconomics: The competitive market equilibrium maximizes gains from

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