chapter6 phase equilibrium-1
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104WHAT’S NEW IN THE SIXTH EDITION:There is a new In the News feature on “Should Unpaid Internships Be Allowed ?”LEARNING OBJECTIVES :By the end of this chapter , students should understand:➢ the effects of government policies that place a ceiling on prices.➢ the effects of government policies that put a floor under prices 。
➢ how a tax on a good affects the price of the good and the quantity sold 。
➢ that taxes levied on sellers and taxes levied on buyers are equivalent 。
➢ how the burden of a tax is split between buyers and sellers.CONTEXT AND PURPOSE :Chapter 6 is the third chapter in a three —chapter sequence that deals with supply and demand and how markets work 。
Chapter 4 developed the model of supply and demand 。
Chapter 5 added precision to the model of supply and demand by developing the concept of elasticity-the sensitivity of the quantity supplied and quantity demanded to changes in economic conditions 。