1. If a price ceiling or price floor exists, why or why not might consumers be willing to purchase products on the black market? What would consumers identify as a consequence of engaging in transactions on the black market over the short run and the long run?
2. Where along any straight-line demand curve should a company price its product if it wishes to maximize revenues?
3. Why are basic commodities, like sugar, attractive targets for government taxation?
4. What is meant by 'internalising' an externality? How can a negative externality be internalised