26 Jan Discussion Questions on Supply and Demand
Discussion Questions on Supply and Demand
1) Government intervenes in the free market by many different ways. For example, regulators may use price controls, impose taxes on consumers as well as on producers and give subsidies to producers. What would be the intended outcome in the market by each of the above government actions? Give a real-world example of how government intervention in the free market affects the demand for or supply of a product or service you use or a product or service produced at your workplace.
2) Under antitrust policies, the government breaks-up some dominant firms, prevents corporate mergers, and regulates some business practices that reduce competition. What are the major antitrust laws in the United States? Discusses several major antitrust cases in the United States. Discuss how the US economy will likely differ today if AT&T had not been broken-up. How do these laws affect (or affected) your work place or products used at your work place?
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