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A legally established maximum price a seller can charge
A legally established minimum price a seller can be paid. (minimum wage)
A situation in which market equlibrium result in too few or too many resources used in the production of goods or services. This inefficiency may justify goverment intervention.
Cases of market failure
- Lack of competition
- Public Goods
- Income Inequality
A cost or benefit imposed on people other than the consumers and producers of a good or service.(pollution)
- A good or services with two properties:
- Users collectively consume benefits and,
- There is no way to bar people who do not pay from consumming the good or service.