- Government Tools: Discuss tools available to the government to correct a market failure.
Supply and Demand Equilibrium: Describe how government intervention affects the supply and demand equilibrium. Refer to the simulation game to explain your responses.- Consumer or
Producer Surplus : Specify which government interventions cause a consumer or producer surplus. Explain how they impact consumer or produce surplus. -
Insert your responses to the following questions: How does this simulation demonstrate how individuals evaluate
opportunity costs to make business decisions? Explain what role the production-possibility frontier (PPF ) has in the decision-making process.][Explain how
comparative advantage impacts a firm’s decision to engage in trade. Would a business’s decision to trade cause a change to its PPF? Provide specific reasoning to support your claims.] -
[Insert your responses to the following questions: What impact do policy interventions have on the supply and demand equilibrium for a product? Provide specific examples from the simulation to illustrate.]
[What are the determinants of
price elasticity of demand ? Identify at least three examples. Based on the outcome of the simulation, explain how price elasticity can impact pricing decisions and total revenue of the firm.][Based on the results of the simulation, can policy market interventions cause a change in consumer or producer surplus? Explain why using specific reasoning.]
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Describe how government intervention affects the supply and
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