When analysing government policies, supply and demand are not very useful tools.

Question

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Supply and demand are important tools for understanding how government policies affect markets and prices. For example, a minimum wage increase will affect the supply of labor and the demand for labor, which will impact wages and employment levels. Similarly, a tax on a particular good will impact its supply and demand, which will affect its price and the quantity consumed.

When Analysing Government Policies, Supply and Demand Are Not Very