While intended to make housing affordable, rent control often leads to shortages, reduced quality of housing, and black markets.

Minimum wage can lead to unemployment if set above the equilibrium wage, as quantity of labor supplied exceeds quantity demanded.

Subsidies increase agricultural production, lower prices for consumers, and can lead to surpluses that need to be managed by the government.

Tariffs increase consumer prices by making imported goods more expensive, reducing consumer surplus.

Quotas reduce the variety of goods available to consumers by limiting the quantity of imports.

Taxes on goods with inelastic demand, like gasoline, lead to a smaller decrease in quantity demanded and generate more tax revenue for the government.

Taxes on goods with elastic demand lead to a larger decrease in quantity demanded and may not generate significant tax revenue.

As gasoline prices increase, people tend to drive less, carpool more, or switch to more fuel-efficient vehicles, leading to a decrease in quantity demanded.

If the price of corn rises, farmers will be incentivized to plant more corn, increasing the quantity supplied to the market.

Because demand is inelastic, companies can increase prices without significantly reducing quantity demanded. This is because people need the drugs regardless of price.

If demand increases, producers can quickly increase production, leading to a relatively small price increase.

Luxury cars are normal goods with high income elasticity. During a recession (income decreases), demand for luxury cars will decrease significantly.

Coffee and tea are substitutes. If the price of tea increases, the demand for coffee will increase.

If the price ceiling is below the equilibrium rent, it creates a shortage of apartments, as quantity demanded exceeds quantity supplied.

The tax shifts the supply curve to the left, increasing the price of cigarettes and decreasing the quantity sold. This also generates tax revenue for the government.

The tariff increases the price of imported steel, making domestic steel producers more competitive and increasing their production and profits.

The quota limits the amount of imported sugar, leading to higher domestic sugar prices as supply is restricted.

Discount sales increase consumer surplus, as consumers pay less than what they were willing to pay, increasing their overall benefit.

Farmers' markets allow producers to sell directly to consumers, potentially increasing producer surplus by eliminating intermediaries and capturing a larger share of the revenue.

If demand exceeds supply, prices can rise until equilibrium is restored. If supply exceeds demand, prices can fall until equilibrium is restored.

The rightward shift indicates an increase in demand, leading to a higher equilibrium price and quantity.

The leftward shift indicates a decrease in supply, leading to a higher equilibrium price and a lower equilibrium quantity.

The demand curve is vertical, indicating that quantity demanded does not change regardless of price.

The supply curve is horizontal, indicating that producers are willing to supply any quantity at a given price.

The price ceiling creates a shortage, as quantity demanded exceeds quantity supplied at the ceiling price. Deadweight loss is also created.

The price floor creates a surplus, as quantity supplied exceeds quantity demanded at the floor price. Deadweight loss is also created.

The tariff increases the price of imports, reduces the quantity of imports, increases domestic production, and creates deadweight loss.

Consumer surplus is the area below the demand curve and above the equilibrium price. Producer surplus is the area above the supply curve and below the equilibrium price.

Deadweight loss is represented by the triangle formed due to the reduction in quantity traded because of the tax. It represents lost consumer and producer surplus.