Impact of Government Policies on Demand and Supply of Guns in the US Market

Running heads: MICROECONOMICS
Microeconomics
Name of the student
Name of the university
Author Note

1MICROECONOMICS
Table of Contents
Introduction:...............................................................................................................................2
Economical analysis:..................................................................................................................2
Conclusion:................................................................................................................................4
References:.................................................................................................................................5

2MICROECONOMICS
Introduction:
The United States has experienced large number of mass shootings compare to any
other countries of this world. For instance, this number has become 146 between 1967 and
2017 (Jang, 2018). Hence, to prevent those illegal activities, the government of this U.S.A
has imposed various policies to restrict the gun market. Through this law, the government has
controlled manufacturing, trading, possessing and transporting of firearms (Cook, 2018). This
in turn has affected the demand and supply of guns and consequently has restricted firearms
companies to earn revenue. Hence, with the help of some diagrams, this report has intended
to analyze those impacts of demand and supply from the economical perspectives.
Economical analysis:
As the government has imposed regulations on the productions and sales of guns, it
has become difficult for producers to sell those products by large quantity. Due to this limited
availability of guns, purchasers have reduced their demands and this consequently has led the
supply of guns to reduce further. On the other hand, the government has also imposed
restrictions on the buyers. For instance, due to open carry laws, the owner cannot carry the
arm at every place. Moreover, licensed gun dealers cannot sell any firearms to a person, who
has the age below 21 (Webster & Wintemute, 2015). These all activities have negatively
influenced the demand for gun within the market and this in turn has also influenced the
supply of this product as well. This can be described properly with the help of a diagram.