Markets and the Economics of Public Sector. Business & Marketing Essay (Essay Sample)

Markets and the Economics of Public Sector
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Markets and the Economics of Public Sector
The notion of how allocation of resources impact the economy is vital in public sector economics. In addition to this, the knowledge about the relationship that exists between the supplier surplus and the demand is pivotal in determining how market efficiency is attained. This paper, therefore, seeks to elaborate on the equilibrium of supply and demand, externalities effects, international trade benefits, taxation cost as well as analyzing tax efficiency and tax equity.
Why equilibrium of supply and demand is desirable.
Equilibrium of demand and supply helps in controlling the market and in turn, provides a harmonious environment between the seller and the buyer. Equilibrium enables both the seller and the buyer to acquire optimal benefits when carrying out trade. Moreover, it eliminates excesses in the market. That is, it does away with the problems of oversupply by the seller or the over-demand by the buyer.