Price Floor, Tax and Subsidy

Price Floor, Tax and Subsidy

Write 2 pages on a specific price ceiling, price floor, tax, or subsidy that is currently in use. Consider how this is preventing the market from reaching its equilibrium. In your essay, include each of the following: History of the government’s involvement (i.e., when and why did they choose to alter the outcome in this particular market) Economic implications of the government’s involvement: extent of deadweight loss, burden and transfer(s) of surplus (including identifying winners and losers) Indirect or unintended consequences of the government’s involvement Details regarding the end, continuation, or expansion of the government’s involvement in this market Your essay must be typed in size 12 Times New Roman font, double-spaced, and with one inch margins. Be sure to include an introduction and conclusion.