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6. Government Policies in Markets: Price Controls and Tax Incidence

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Price Ceilings, Price Floors, and Black Markets

Effects of Surplus

Effects of Shortage

Market Equilibrium

Using the Supply and Demand Curves to Find Equilibrium

Introducing Taxes and Tax Incidence

Effects of Taxes on a Market

Elasticity and Taxes

Percentage Change and Price Elasticity of Demand

Price Elasticity of Demand on a Graph