Chapter 21 - Market Efficiency and Government Intervention

Willingness

________ to pay** is the maximum amount a consumer is willing to pay for a product.

Deadweight loss

________ from taxation** is the difference between the total burden of a tax amount of revenue collected by the government.

particular good

A way to control quantity is to limit the imports of a(n) ________.

market equilibrium

The ________ maximizes the total surplus of the market because it guarantees that all mutually beneficial transactions will happen.

import ban

The ________ would cause domestic producers to gain at the expense of domestic consumers because consumers would lose more than domestic producers would gain, the ________ would cause a net loss for people in the United States.

import restriction

A(n) ________ increases the market price and decreases the total surplus of the market.

excess demand

If the demand for tax goods is inelastic we need a large price hike to eliminate the ________ caused by the tax.

Deadweight loss

________** is the decrease in the total surplus of the market that results from a policy such as rent control.