Abstract
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.
| Original language | English |
|---|---|
| Journal | Property valuer Dublin |
| DOIs | |
| Publication status | Published - 1 Oct 2007 |
| Externally published | Yes |
Keywords
- Government laws
- supply and demand
- unintended consequences
- policy makers
- prices
- social benefits
- costs
- welfare of society