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Need help with understanding economics.
The availability of alternative entertainment methods has resulted in a large decrease in theme-park visitors. To help the theme-park operators, the government is contemplating imposing a price floor for theme-park tickets or providing a subsidy to theme park visitors. Appraise the welfare effects of these two policies with suitable theme-park market diagrams. Your diagrams should take into consideration of the price elasticity of demand and supply of theme-park in general
You need to:
Explain and evaluate the effect of price floor for theme-park tickets AND
Explain and evaluate the effect of providing subsidies to theme park visitors, with use of market diagram, with consideration of price elasticity of demand and supply of theme-park in general
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