The rightward shift indicates an increase in demand, leading to a higher equilibrium price and quantity.

The leftward shift indicates a decrease in supply, leading to a higher equilibrium price and a lower equilibrium quantity.

The demand curve is vertical, indicating that quantity demanded does not change regardless of price.

The supply curve is horizontal, indicating that producers are willing to supply any quantity at a given price.

The price ceiling creates a shortage, as quantity demanded exceeds quantity supplied at the ceiling price. Deadweight loss is also created.

The price floor creates a surplus, as quantity supplied exceeds quantity demanded at the floor price. Deadweight loss is also created.

The tariff increases the price of imports, reduces the quantity of imports, increases domestic production, and creates deadweight loss.

Consumer surplus is the area below the demand curve and above the equilibrium price. Producer surplus is the area above the supply curve and below the equilibrium price.

Deadweight loss is represented by the triangle formed due to the reduction in quantity traded because of the tax. It represents lost consumer and producer surplus.

While intended to make housing affordable, rent control often leads to shortages, reduced quality of housing, and black markets.

Minimum wage can lead to unemployment if set above the equilibrium wage, as quantity of labor supplied exceeds quantity demanded.

Subsidies increase agricultural production, lower prices for consumers, and can lead to surpluses that need to be managed by the government.

Tariffs increase consumer prices by making imported goods more expensive, reducing consumer surplus.

Quotas reduce the variety of goods available to consumers by limiting the quantity of imports.

Taxes on goods with inelastic demand, like gasoline, lead to a smaller decrease in quantity demanded and generate more tax revenue for the government.

Taxes on goods with elastic demand lead to a larger decrease in quantity demanded and may not generate significant tax revenue.

As prices rise, quantity demanded falls.

As prices rise, quantity supplied increases.

Measures how much quantity demanded changes when price changes.

Measures how much quantity supplied changes when price changes.

Measures how quantity demanded changes with changes in income.

Measures how quantity demanded of one good changes with the price of another.

The price and quantity at which supply and demand curves intersect.

The difference between what consumers are willing to pay and what they actually pay.

The difference between what producers are willing to sell for and what they actually receive.

A maximum legal price set by the government.

A minimum legal price set by the government.

Taxes on imported goods.

Limits on the quantity of imported goods.

The loss of total surplus when the market is not at equilibrium.