L, A, and S for each government intervention type

In the short run, indirect taxes on 'bad' goods primarily lead to __ and more government revenue.

higher prices

In the long run, consumers and firms adjust behavior, leading to a potential reduction in __ as quantity decreases.

tax revenue

Indirect taxes assume that demand is sufficiently price __; if inelastic, the tax raises revenue with limited quantity effect.

elastic

The government must accurately estimate external costs to set the __ tax and prevent avoidance.

right

Consumers face higher prices from indirect taxes, which can be particularly __ for low-income individuals.

regressive

Producers may see lower sales due to indirect taxes, while the government gains revenue and potentially __ external costs.

reduces

Subsidies lower producers' costs and reduce market prices in the __ run.

short

In the long run, permanent subsidies can strain the __ and reduce firms' incentives to innovate.

government budget

Subsidies assume that the subsidized good generates significant positive __ and improves overall welfare.

externalities

Assuming the subsidy is well-targeted, it should not be captured by __ through higher prices.

producers

Consumers benefit from subsidies through lower prices and increased __, while producers gain higher revenues.

access

Minimum prices cause surpluses in the __ run, benefiting those who remain employed at higher wages.

short

In the long run, firms may substitute factors and increase structural __ due to minimum wages.

unemployment

Governments must enforce minimum price laws; otherwise, __ markets can emerge, affecting the policy's effectiveness.

informal

If demand is highly elastic, a minimum price can lead to a sharp fall in __.

quantity demanded

Consumers may gain from a price ceiling as it makes goods more __, but they may also face shortages.

affordable

Persistent low prices from price ceilings can worsen __ problems over time, reducing incentives.

quality

Authorities managing price ceilings must accurately allocate resources through methods like __ and waiting lists.

rationing

Equity gains from price ceilings must outweigh efficiency losses from shortages and resource __.

misallocation

Consumers obtaining goods at controlled prices may face __ or higher prices in black markets.

queues

Producers face lower prices and profits from price ceilings, which can lead to __ in supplier quality.

deterioration

The indirect tax on 'bad' goods assumes that consumers' behavior towards demand can be __ by changes in price.

affected

Governments using subsidies must consider the __ costs involved for taxpayers and alternative use of funds.

opportunity

Minimum wages increase costs for firms, impacting their __ for employment, which can lead to higher welfare costs.

capacity