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EC311 · Intermediate Microeconomics

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EC311 / TOPIC 25

7.3 Taxes, subsidies and welfare

A teaching model for this topic. Its illustrative numbers may differ from the worked question.

  1. 01Predict
  2. 02Try
  3. 03Explain
  4. 04Challenge

How do demand and a tax change a market differently?

Illustrative model numbers, not Thailand or current economic data.

Start with higher demand and zero tax. What happens to price and quantity?