IB Economics HL 2.7.2 Main forms of intervention
IB Economics HL 2.7.2 Main forms of intervention
Students practise drawing, labelling, and interpreting demand–supply diagrams for each main intervention—and calculating associated costs, revenues, or welfare effects.
How this is tested
- sketch a subsidy diagram with the vertical gap showing the per-unit subsidy and total cost
- calculate tax incidence from the price rise to consumers and price fall to producers
- label price floor diagrams to show government purchase or storage costs from excess supply