MODULE 4

Simulation Checkpoint Assignment

Competitive Markets and Externalities

[Replace this area with the Supply and Demand chart.]

Figure 2.1

[Replace this area with the Outcomes by Market table.]

Figure 2.2

[Insert your responses to the following questions: 1. What tools are available to the government to correct market failures, explain using examples from the textbook. 2. What impact do policy interventions have on the supply and demand equilibrium for a product? Provide specific examples from the simulation to illustrate.]

[What are the determinants of price elasticity of demand? Identify at least three examples. Based on the outcome of the simulation, explain how price elasticity can impact pricing decisions and total revenue of the firm.]

[Based on the results of the simulation, can policy market interventions cause consumer or producer surplus? Explain why using specific reasoning.]

References

Mankiw, N. G. (2021). Principles of microeconomics (#9 edition). Cengage.

[Add other citations, as needed, in APA format ].