AP®​ MICROECONOMICS
Government Intervention

This section of the AP® Microeconomics course examines the three main types of government intervention in the market: indirect taxes, subsidies and price controls. Each of these government interventions are modelled to show their effects on supply and demand, and the market equilibrium for a good and service. Thus, each type of intervention will have an effect on the price of a good or service, and the quantity demanded and the quantity supplied in the market.

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Government Intervention  – Topics:

• Indirect taxes
  
• Subsidies
  
• Price controls​
  

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Indirect taxes

Subsidies

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Price ceiling

Price floor