2024, Set 1, Question 2 · Short · 5 points
Fixing a market with an external benefit
Read a market graph to find equilibrium and calculate deadweight loss. Then choose between a tax and a subsidy to reach the efficient quantity, give its size, and judge whether a price ceiling would get there instead.
1 Read the question
The question is College Board's, from the 2024, Set 1 exam. It starts on page 4 of the PDF.
2 Write your answer
Answer each part the way you would on the exam, in full sentences, with your work shown. Your writing saves as you type.
3 Score it
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Scoring guidelines (PDF, page 5) What the exam readers saw (Chief Reader report)
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