# Any difference between the DWL results from tax and binding price ceiling, what makes govenment choose one over another?

Same as the title. From the Graphs, I cannot see any difference or what makes policymakers to distinguished those two?

Here is the capture from Perloff's textbook. Now compare this with the case that government impose a unit tax $$(p_3-p_2)$$ on suppliers. The tax case and price ceiling simply reach the same outcome, from what ground distinguished these two policies?

• Theoretical differences depend on what you are trying to measure. Units sold? Surplus? Can you please share "the Graphs" (edit them into the question), so that we can better understand your problem? Aug 21 '21 at 9:10
• Practical differences are quite clear: a price ceiling sets a price; a tax influences the price, but without perfect knowledge the government will not foresee the price. Aug 21 '21 at 9:11
• I have been re-edited, cheers
– LJNG
Aug 21 '21 at 9:44
• Their CS, PS, WFL are all the same.
– LJNG
Aug 21 '21 at 9:46
• I agree with your point about the intersect, but how do you know that "CS, PS, WFL are all the same"? Aug 21 '21 at 9:54