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Simplify price controls tutorial by removing static SVG files
- Remove static SVG files that were duplicating notebook outputs - Update RST documentation to rely on notebook-generated plots - Clean up price_controls.ipynb for clearer presentation - Maintain all educational content while reducing file redundancy 🤖 Generated with [Claude Code](https://claude.ai/code) Co-Authored-By: Claude <noreply@anthropic.com>
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docs/notebooks/price_controls.ipynb

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"# Both should equal free market equilibrium\n",
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"print(f\"Free market: P = ${free_market.p:.2f}, Q = {free_market.q:.0f}\")"
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]
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},
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{
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"cell_type": "markdown",
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"id": "welfare",
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"metadata": {},
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"source": [
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"## Welfare Analysis\n",
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"\n",
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"Price controls reduce total surplus by preventing some mutually beneficial trades:"
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]
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},
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{
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"cell_type": "code",
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"execution_count": null,
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"id": "welfare-comparison",
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"metadata": {},
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"outputs": [],
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"source": [
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"# Compare welfare across different scenarios\n",
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"scenarios = [\n",
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" (\"Free Market\", free_market),\n",
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" (\"Price Ceiling ($8)\", ceiling_market),\n",
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" (\"Price Floor ($12)\", floor_market)\n",
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"]\n",
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"\n",
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"print(\"Welfare Comparison:\")\n",
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"print(\"-\" * 50)\n",
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"for name, market in scenarios:\n",
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" print(f\"{name:20} CS: ${market.consumer_surplus:6.2f} \"\n",
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" f\"PS: ${market.producer_surplus:6.2f} \"\n",
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" f\"Total: ${market.total_surplus:6.2f}\")\n",
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"print(\"-\" * 50)\n",
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"print(f\"DWL from ceiling: ${ceiling_market.dwl:.2f}\")\n",
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"print(f\"DWL from floor: ${floor_market.dwl:.2f}\")"
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]
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},
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{
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"cell_type": "markdown",
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"id": "elasticity-impact",
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"metadata": {},
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"source": [
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"## Elasticity and Price Controls\n",
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"\n",
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"The impact of price controls depends on the elasticity of supply and demand. Let's compare markets with different elasticities:"
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]
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},
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{
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"cell_type": "code",
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"execution_count": null,
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"id": "elasticity-comparison",
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"metadata": {},
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"outputs": [],
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"source": [
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"# More elastic demand (flatter)\n",
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"elastic_demand = Demand.from_formula(\"P = 20 - 0.5*Q\")\n",
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"elastic_market = Market(elastic_demand, supply)\n",
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"elastic_ceiling = Market(elastic_demand, supply, ceiling=8)\n",
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"\n",
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"# Compare shortages\n",
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"inelastic_shortage = demand.q(8) - supply.q(8)\n",
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"elastic_shortage = elastic_demand.q(8) - supply.q(8)\n",
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"\n",
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"print(\"Effect of $8 ceiling with different demand elasticities:\")\n",
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"print(f\" Inelastic demand shortage: {inelastic_shortage:.0f} units\")\n",
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"print(f\" Elastic demand shortage: {elastic_shortage:.0f} units\")\n",
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"print(f\" Inelastic DWL: ${ceiling_market.dwl:.2f}\")\n",
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"print(f\" Elastic DWL: ${elastic_ceiling.dwl:.2f}\")"
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]
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},
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{
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"cell_type": "markdown",
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"id": "visual-comparison",
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"metadata": {},
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"source": [
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"## Visual Comparison\n",
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"\n",
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"Let's create a side-by-side comparison of price ceiling and floor effects:"
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]
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},
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{
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"cell_type": "code",
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"execution_count": null,
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"id": "side-by-side",
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"metadata": {},
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"outputs": [],
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"source": [
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"import matplotlib.pyplot as plt\n",
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"\n",
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"fig, (ax1, ax2) = plt.subplots(1, 2, figsize=(12, 5))\n",
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"\n",
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"# Price ceiling plot\n",
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"ceiling_market.plot(ax=ax1, surplus=True)\n",
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"ax1.set_title(\"Price Ceiling at $8\\n(Creates Shortage)\")\n",
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"ax1.axhline(8, color='red', linestyle='--', alpha=0.7, label='Ceiling')\n",
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"ax1.legend()\n",
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"\n",
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"# Price floor plot\n",
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"floor_market.plot(ax=ax2, surplus=True)\n",
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"ax2.set_title(\"Price Floor at $12\\n(Creates Surplus)\")\n",
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"ax2.axhline(12, color='red', linestyle='--', alpha=0.7, label='Floor')\n",
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"ax2.legend()\n",
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"\n",
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"plt.tight_layout()\n",
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"plt.show()"
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]
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},
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{
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"cell_type": "markdown",
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"id": "try-it",
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"metadata": {},
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"source": [
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"## Try It Yourself!\n",
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"\n",
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"Now experiment with the code above. Some ideas:\n",
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"\n",
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"1. **Change the ceiling/floor prices** - How does the shortage/surplus change as you move the control closer to equilibrium?\n",
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"2. **Modify the demand and supply curves** - How do steeper or flatter curves affect the impact of controls?\n",
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"3. **Calculate the percentage of DWL** - What fraction of the free market surplus is lost?\n",
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"4. **Find the break-even point** - At what control price does consumer surplus equal producer surplus?"
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]
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}
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],
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"metadata": {

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