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1.5 EARTH AND RELATED ENVIRONMENTAL SCIENCES, Water resources, 2.7 ENVIRONMENTAL ENGINEERING, 5.2 ECONOMICS AND BUSINESS, 5.3 EDUCATIONAL SCIENCES, 5.6 POLITICAL SCIENCE, 5.7 SOCIAL AND ECONOMIC GEOGRAPHY
Government laws are not always consistent with the laws of supply and demand and when enacted have unintended consequences. Three real world examples provide illustrations of policy makers implementing policies that have unintended consequences. When households and firms look at prices when deciding what to buy and sell, they unknowingly take into account the social benefits and costs of their actions. As a result, prices guide these individual decision makers to reach outcomes that maximize the welfare of society as a whole.
Power, T. Are Government Laws Consistent with the Laws of Supply and Demand. Property valuer Dublin, 2007. doi:10.21427/ctf8-4d54
Property Valuer, Winter 2007