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Video Recap - Coggle Diagram
Video Recap
Maximum price
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some real life examples: train tickets (monopoly power)- for food this intervention keeps the food affordable
consumers benefit from this type of intervention prevents exploitation, this increases the QD
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Indirect taxation
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Indirect taxation is a type of tax where the incidence and impact of taxation does not fall on the same entity. There are 2 types of indirect taxes, ad valorem and specific
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Direct Provision
More schools were built so the quantity increased. The goal is to give everyone the possibility of having a good education.
For the equilibrium, the demand increases and the price goes down. The demand makes a right ward shift.
Direct provision is a means of meeting the basic needs of food, education and shelter for citizens
Both government and population can benefit from this government intervention. The government will have more educated people in the country and for the people to become smarter and to learn things.
Minimum wage
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minimum wage should provide enough income to live (food ) this should protect them from exploitations, however, this causes inflation over time
When there is an increase in a minimum wage, more people are willing to work for a certain company, increasing the production rate exponentially.