Introducing Supply and Demand
Read the sections on Demand, Supply, Market Equilibrium, and Government Intervention and Disequilibrium for a mathematical exposition of the demand and supply model, clicking through to the next when you have finished each page. The chapter also covers price ceilings and price floor analysis as well as quantity regulations.
Taxes
Elements of a Good Tax System
- Efficient: A tax system should raise the necessary revenues without unduly burdening the taxpayer.
- Understandable: A tax system should be easily understandable by the average citizen who has to pay the tax.
- Equitable: The tax burden should be distributed equitably among a nation's citizens. Generally, this means that those that are wealthier should pay more.
- Benefit Principle: Generally, the people who use public services should pay for them with higher taxes. However this principle is difficult to enforce in practice.