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Tax Subsidy on Electric Cars: Demand-Supply Shift

유형 블록 다이어그램표준 Ogata / standard controls textbook convention엔진 schematex-blockdiagram업데이트됨 2026. 9. 29.
Tax Subsidy on Electric Cars: Demand-Supply Shift
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A government introduces a tax subsidy for electric cars, which simultaneously increases consumer demand (shift right) and producer supply (shift right). The market adjusts from the initial equilibrium to a new equilibrium with higher quantity and potentially ambiguous price change.

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01

Model subsidy as an external disturbance input

02

Represent market clearing as a feedback loop with price adjustment

03

Use demand and supply blocks that depend on both price and subsidy

When analyzing simultaneous shifts in both demand and supply due to a policy change, and the need to illustrate the dynamic adjustment to new equilibrium.

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