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diagram of any one of the four market interventions listed below. Tax Subsidy Price Ceiling Price Floor Here's what I want your graph to show:
diagram of any one of the four market interventions listed below.
- Tax
- Subsidy
- Price Ceiling
- Price Floor
Here's what I want your graph to show:
- Original market equilibrium
- The size of the tax or subsidy OR the level of the controlled price (depending on which intervention you choose)
- The final market quantity
- The area of deadweight loss (lost gains from trade) that results from this market intervention (shade it in and label it)
- All other appropriate labels (D, S, P, Q, etc.)
- Your name and the date should appear in the photo of your graph, near your graph.
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