Photo credits: Cambridge University Press 2012, tutor2u
Must-know diagrams
Microeconomics
Production Possibility Curve Market equilibrium Consumer & producer surplus PED along a demand curve
Price inelastic demand 0<PED<1 Price elastic demand 1<PED Taxing on PED inelastic goods Taxing on PED elastic goods
Specific tax Ad valorem tax Price floor/min. price Price ceiling/max. price
Positive consumption externality Positive production externality Negative production externality Negative consumption
externality
Imposing indirect tax Advertising Direct provision Subsidy