(See related pages)
After reading this chapter you should be able to
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Understand how we can apply a supply and demand model and the concepts of consumer and producer surplus to tobacco, alcohol, drugs, and prostitution. |
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See that economists endorse interference in a market for reasons related to the information and costs to innocent third parties. |
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See how the elasticity of demand for tobacco and alcohol determines who gets hurt by taxes on these goods. |
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Understand the impact of drug legalization. |