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Price Supports

Consumer Surplus with Price Support

Consumer Surplus with Price Support

This graph is a complement to the first graph. It demonstrates the effect of implementing a price support on a basic supply and demand chart. The overall consumption will decrease as the government buys up consumer surplus. This demonstrates a price control on behalf of the government.

Source

    Boundless vets and curates high-quality, openly licensed content from around the Internet. This particular resource used the following sources:

    Wikimedia.
    http://upload.wikimedia.org/wikipedia/en/3/3d/Subsidy_Surplus.png CC BY-SA.

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  • Price support
  • Subsidies
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