Theme 1: Diagrams Flashcards
1
Q
Illustrate what happens to a consumer and producer surplus when demand rises
A
2
Q
Illustrate what happens to a consumer and producer surplus when supply rises
A
3
Q
Draw a specific tax diagram
A
4
Q
Draw an ad valorem tax diagram
A
5
Q
Draw a subsidy diagram
A
6
Q
Draw a diagram identifying welfare loss (negative production externalities)
A
7
Q
Draw a diagram identifying welfare gain (positive consumption externalities)
A
8
Q
Draw a diagram illustrating what happens when there is asymmetric information and the buyer overestimates the benefits of the products.
A
9
Q
Draw a minimum price diagram
A
10
Q
Draw a maximum price diagram
A
