Document Type

Article

Rights

This item is available under a Creative Commons License for non-commercial use only

Disciplines

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

Publication Details

Property Valuer, Winter 2007

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.

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