GOVERNMENT INTERVENTION

Price maximum price

ceiling

P
legal mar price

S Mtb

con ke

gls

ÉÉ

h i

Po Ing

e t

i I Amato

o Q2 Q Q

why they're torestictorbitation theanswer

applied To restrict monopoly power

To Paccess to merit goods especially meritgoods

Consumers

Pf Pa t consumer surplus from

at b to a ti

Y d in P
benefit most as

Low households

larger i their Y
y
represents a

Y purchasing power out I consumption

Y real Y

other

y gls


Previous expenditure P x Q

Expenditure with mue price Pe x Q

The shortage Qs On leads to

y
consumers

dissatisfied

Produces pf t producer surplus from Ctd te

to only e

t as potentially
te produces t

competition

TR t from Pit Or to Pa X Q

I Plait t IT int

merit goods
Y consumption

Government
I p y

L P nit au TR t government
revenue

public and merit goods

t provision
y

Ir a Inorkers needed and I memplomat

L P muy
improved government
image

al t

Workers Ir a Inorkers needed unemployment

t status

Society as a hacen to merit

whole
Qs Ud misallocation resources are
y

shortage

social surplus before a tb t t dt e

social suplen with a t te

price ceiling

loss b ta

deadweight

Consequences ceilings
price

Shortages

non price rationing

queueing
l first come fin serve

favoritism

Coupons

Black makes underground

T imports

Price calculations

ceiling

a P 5130

8000

Qd 8000 Shortage tooo

Qs 4000 foro mis

b Expenditure 440 6000 4210,000

before
ISIL

30 x poco 000

after

Din Consur 120,000

apulitre

PRICE FLOOR Minimmpria

mmÍmmiT

Lacan toglsldeneitgo.dtscigslad.tl

petrol weapons

chi revenue nit

to hdp protest producer by ensuring a

P r s

With a pringhor Assad

pr
there's an overall
oration

t 1 surplus

n Ey y
resources in the production the
gls

i i
i
I

i i

Que Q Q Q

sumas

Y previous es a t btc IP

real Y

PF CS a

I disposal Y

Previous expenditure Pix Q

Pr expenditure PF x Qd


producers
y previous PS

te

Qs al

Pf PS b d wasted resources

Previous IR PI X Q The Din TR depends on

the
Pr TR Pr e Qu the PED

e
y good

Government

p y indirect tu rearme it i

to demerit

t nacen goods

loss te

deadweight

TP inflation

Os ad disequilibrium

How the solves the suples in the market

government

p r
s
Í

pr
t t it

n
t

I h Y DI

i i t l

Que Q Q Q

sumas

Government T demand and buys the surplus DT

from D to Dr This is then given or exporta

away

The government expenditure is Qs QU e Pr

They spend Ltd te t ft y th ti

The in producer supla is only

gain y

The deadweight loss c

Minimum

urge

nortes
for

A minimum legal pay for

a paid employment

se Csny y

wage labor

Wnin l l

minimum

W a l i I wage

l l

penal por labor

l l n

1 1

Qda 4 Qs nortes

g y
Qs Qu workers

surplus lmeplg.net

Should Spain t the min wage to Foot

Advantages Disadvantages

workers real Yt Y Qsl 1 Q al

t acento merit
goods U tu disposableY

1 statu T
y living
f

consumption

businesses shutting
down

Y wage
9 motivation

T labour
printing Y prolution Copp un
costo
y

LAC TI

1s PP

inflation

I Y inequality as low Y

t CS f purchasing power

canos t wage

t pay

how can an t in min fuorkers

wage

se works are exploited a

vaya Tf
low te

w V ley imposition

Minuye f Oye

10
8 Mt y from Qs to Qs

f i I

i I Y

Q Q monopton
Q o noten PON
g y

Twase Is PP

Price control calculations

Data requiredfor

the following

pls Qd Qs questions

2 8 O a Equilibrimprice 4

3 t l Equilibrium quality
tuit

4 6 2

5 5 3

6 4 f p lo s

7 3 5

8 2 6 4 8

9 1 7

10 0 8
P
16 y
4

p
g f Price
floor

2 I D

d TRbjore

or

Es
Egg

tuits

tf

Indirect taxes

Taxes shard

on
gls by consumer

and producer
finally paid by poder

tryout VAT IVA excise tan

ey

1 Lll

201

why impose an indirectly

tgort.rernne stg.at

budget

Laccess

top

I supply gls

gotita

revenue
consumer

tu burden Sttas

ni C2 B xD

franja
www.xansmtai.in

HÉJIRA

12 A xD

loss

promo tubular

podar

menuda D Mi B Un

Cincidente
 o Ora Q
deadweight tss

Q _a x Pr Ps

tren Y

consumpp 2

4 LI

palmes f revenue permit amergereren

to P

l Q alt P t TR

I PS

b Q
tgovtrer.fr

got
public

Y meitgr.li

provision
y goods

workers

worse
l

business an Q
t TRfor

workers

less need for

society
 I got a access I md s

rev
y

deadweight loss Y

tu m demerit good beneficia

a d valoren tu

unit tu

p la P So

g s

13 flor

Eta

o Q

Tae on the value

mont tu m

fixed y 24 grabe

2 nit y gls y

a
gls y

The lowerthe lady indirect

taxation the better

Evaluate this view

P Srta

casinita

The lower the

y the high
PED

pre
P I the consumer tu

TT burden

1 1

producer

invita I D

QQ

o
Q

Srta S

fin

mí

p D

Q Q

lower the indirect taxation the better

The lady

Evaluate this view T marks

1 Define indirect tu

al supply

indirect taxes

2 St D diagram t exploding shift

motives for indira

p WEEKde St tu

alinidad tres

palma

IÉIYE

www
loss

pour
i
EI L

Qe PQ a

3 Reasons lower taxes

for angels

Lower tretas t p Tren y

Y putita Y GDP economic growth tuneplym.tt

Higher social surplus

1 not have low tres

why


Y gout budget

nha tweed
Ir acento deneitg.is

5 It depends

taxation or demerit goods beneficial

High

lower taxes on mit gods basic fads

SUBSIDIES
Financial aid given to produces to

increase production
y
a
gls

p
n S

ÜÉETE

D 1

1 D

Q Qu a

on

Ps P Qr govt spending subsidy

Byore After

at bt de
ft y

CS a tb CS

d te PS b tit d t e

PS

h wywel.is

n s

a St subsidy

Luiz
iii

t.la tiid

1 1

Q Qu Q

SUBSIDIES calculations

at b Price paid by

10
consumers
El

p
8 4mm
c Previous consumer
6 5

ÜÉ uy

O
a 4 6
i 8 1
D

E
y Ps4
previous
10
Previous b tonnes
p g ey q
 1
S
Nw ey PIE

fiiin Nar
ey.gs
8 tonnes

iii
tornes
Q

Elp txt
Previous consumer aperture
Nen consumo epentitre ELK 38
D EO

Previous producer rerenne 4 6 124

Previous S 7 4 6 49
L

Nw CS 7 3 8 Ello
2
4 Et

Previous PS 4 1 6 19
2

New P1 5 D8 Ell
2

8 17
 loss
EL
welfare
LIL
Gort expenditure

ICS
IPS
Welfare l
 p

Ismay

iEEEE
D
1
Q Qu á
Consumes
Es a a tb t Atf y
low Y census Y

producen APS e s e f d tb te

PI Qu Psx Qr
f TR e

TR P X Qe Pi e Qu
D in

83 82 Un
opp.UA y
government

PI TUP IU
Tup.tn
worker
martes
hs Y

sonido
s gls
tl Y
 y
welfare
lost h
p B a 02 4
2
in SS
gain
b d c
hit