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Applications of Regulatory Intervention

Author: Kate Eskra

Source: Source: Image of Tax Graph created by Kate Eskra, Image of Welfare Analysis of Tax Graph created by Kate Eskra, Image of Subsidy Graph created by Kate Eskra, Image of Welfare Analysis of Subsidy Graph created by Kate Eskra

Video Transcript
Terms to Know
Consumer Surplus

Determined by the difference between actual price paid for a good and the highest amounts the consumer would have paid for the good.

Deadweight Loss

A variable that decreases the producer and consumer surplus due to a section of an incapacitated resource, such as tax.

Producer Surplus

The difference between actual payment for a good and the least amounts a producer would have agreed to receive for the good.