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.
4. Government Intervention and Disequilibrium
Governments also intervene to minimize the damage caused by naturally
occurring economic events. Recessions and inflation are part of the
natural business cycle but can have a devastating effect on citizens. In
these cases, governments intervene through
subsidies and manipulation of the money supply to minimize the harsh
impact of economic forces on its constituents.