When analysing the economic effects of government policies:

Question

Quizplus · Accepted Answer

Supply and demand are fundamental principles of economics that apply to both regulated and unregulated markets. They are useful tools for analyzing the effects of government policies on the market. However, the effects may not always be as stated in the legislation, as other factors such as consumer behavior, production costs, and competition may also play a role. Random economic shocks can also affect the outcomes of government policies, but they are not the only determinant.

When Analysing the Economic Effects of Government Policies