1. ECONOMIC SURPLUS
   1. equals
      1. CS + PS
2. CEILING
   1. eg
      1. gasoline: 24000 đ
   2. DEF
      1. MAX legal price a seller may charge for a GoS
      2. imposed by Govt
      3. BELOW equilibrium
         1. must below the MARKET CLEARING PRICE
   3. effect
      1. CONSUMERS
         1. higher purchasing power
         2. lower Y iequality
         3. protected
      2. E
         1. stabilise price on necessities
            1. during war time
         2. RATION SYSTEMS
            1. shortage: D exceeds S: govt distributes limited supply evenly
            2. ration coupons
         3. BLACK MARKET
            1. place interacts above the price ceiling
      3. protected
   4. change in CS & PS
      1. Consumer Surplus: A + C
      2. Producer Surplus: F
      3. Black market: C + A lower part
      4. Deadweight loss: B + E
         1. net loss in total surplus
3. FLOOR
   1. eg
      1. Firms have to buy rice from farmers at least 4,000 VND – 4,500 VND/kg,…
   2. DEF
      1. MIN legal prices consumers pay
      2. fixed by GOVT
      3. ABOVE equilibrium
   3. effects
      1. HOUSEHOLDS
         1. workers
            1. protect workers: MIN wages
            2. excess S for L: unemployment
         2. consumers
            1. consumers pay higher price
            2. decreased purchasing power
      2. FIRMS
         1. support/maintain important sectors of the economy
         2. Reallocation of Rs toward suppliers
         3. S receives higher price per unit
            1. PROFIT
   4. change in CS & PS
      1. Consumer Surplus: A
      2. Producer Surplus: F + C
      3. B: Consumer surplus loss - loss in utility
      4. Deadweight loss: B + E
         1. net loss in total surplus
4. QUOTA
   1. DEF
      1. restriction GnS produced
         1. limited -> scarcity
            1. increase PRICE
   2. change in CS & PS
      1. Consumer Surplus: A
      2. Producer Surplus: B + E
      3. Deadweight loss: C+ F
         1. net loss in total surplus
5. TAX
   1. DEF
      1. financial charge
         1. individual
         2. government entity
         3. by authority
      2. failure to pay
         1. punishable by the law
   2. tax burden share
      1. burden falls on producers
         1. burden falls on consumers
         2. luxurious goods
            1. less effective in raising substantial revenues
            2. effective: confer a sense of fairness to the taxpayer
   3. effect
      1. restrict consumption
         1. the more inelastic, the greater the tax
         2. greater tax burden falls on the consumers
   4. change in CS & PS
      1. Consumer Surplus: A
      2. Producer Surplus: G
      3. Tax Revenue: B+E
         1. consumers' burden: B
         2. producers' burden: E
      4. Deadweight loss: C+ F
         1. net loss in total surplus
6. SUBSIDY
   1. change in CS & PS
      1. Consumer Surplus: A + B + E + F + G
      2. Producer Surplus: E + H + B + C
      3. Govt expense: B+C+E+F+G+I+J (Red box)
      4. Deadweight loss: I + J
         1. Lost GOVT expense not reallocated anywhere