Key Idea: Topic 2.7 covers three tools governments use to intervene in markets: **price controls** (ceilings and floors), **indirect taxes**, and **subsidies**. Each creates winners, losers, and a **deadweight loss**.
✅ Core definitions
Price ceilings go BELOW equilibrium. Price floors go ABOVE. If set the wrong way, they have no effect.
📊 Tax incidence and elasticity
⚖️ Evaluation — all three tools
In diagram questions: always shade the **deadweight loss triangle**, label government revenue (taxes) or government expenditure (subsidies), and show the incidence split.