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Having trouble drawing this graph... see directions Create your own diagram of any one of the four market interventions listed below. Tax Subsidy Price Ceiling
Having trouble drawing this graph... see directions
Create your own 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.)
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