Economics IBDP Real World Examples

Price Ceiling (Housing)

2008, New York, price ceiling on rental housing 60% lower in New York (by limiting amount of landlords charging rent), increase political popularity of government to low-income consumers

Price Ceiling (Agricultural Product)

2018, Kenya, maize flour in Kenya which is on of the country’s main staple food, key ingredient for commonly eaten dishes, made affordable, hence able to consume essential food

Price Floor (Agricultural Product)

2020, Kerala, price floor on vegetables in Kerala, hence support and provide relief for farmers (20% above normal price)

Government Indirect Taxes (Canada)

2019, Canada, discourage burning of coal

Government Indirect Taxes (Qatar)

100% alcohol tax discourage alcohol consumptions

Tax ad valorem

2017, India, Introduction of GST on various goods

Government subsidy (Hong Kong)

1991, Hong Kong, direct subsidy scheme: HK gov subsidise non-government primary and secondary school, correct positive externalities of production and consumption, which is the external benefits created by producers/consumers on the third party

Government subsidy (Australia)

2020, Australia, funding renewable energy agencies

Subsidy (Agricultural Product)

1998, USA, rice market subsidy since 1998, improve national welfare + health, has effect of lowering price good, usually necessities, making goods more affordable to especially low income consumers