A tax wedge is the difference between before-tax and after-tax wages. It also refers to the market inefficiency that is created when a good is taxed.

In the context of markets, equilibrium is when there's a balance between supply and demand, causing prices to stabilize. When there's an imbalance between supply and demand, prices tend to fluctuate ...

Discover what administered prices are, their role in economies, examples from history, and how they impact supply, demand, and economic efficiency.