eco 201 week 4 short paper

Overview

The government intervenes to correct market inefficiencies and inequalities through policies such as price floors and price ceilings, as well as taxes and subsidies. In this short paper, you will choose a government policy intervention and describe how it affects market equilibrium.

Directions

Research a current news article about a government policy enacted in the United States that impacts both supply and demand for a specific product or service. Using the template provided in the What to Submit section, write a short paper demonstrating what you have learned about government policy interventions.

Specifically, you must address the following rubric criteria:

1. Introduction: Briefly introduce the chosen government policy intervention and describe the intended effects on the market.
2. Policy Analysis: Analyze how the policy affects the equilibrium price and quantity in the market for a specific product or service.

• What are the changes in consumer surplus, producer surplus, and total surplus? Provide specific examples to illustrate.
• What is the overall impact on the market? Provide specific examples to illustrate.

1. Policy Evaluation: Evaluate the effectiveness of the policy.

• Does the policy achieve its intended objectives?
• What actions can the government pursue to be more effective? Provide specific examples to illustrate.

Support your claims with examples from the news article or from the textbook cited in APA format.

What to Submit

Using the , create your short paper and submit it for grading. Sources should be cited according to APA style.