Problem
1. Why does a market clear when the government imposes an excise tax of $T per unit?
2. Why does a market clear when the government gives producers a subsidy of $S per unit?
3. Why does the market not clear with a production quota?
4. With a price floor, will the most efficient producers necessarily be the ones supplying the market?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.