Reference no: EM132140486
Suppose that the government gives a $10 per unit subsidy to sellers of Humbugs. The pre-subsidy price of Humbugs was $50. There are no additional social benefits to encouraging the consumption of Humbugs.
If, at the original equilibrium price, the elasticity of demand was -0.5 and the elasticity of supply was 2, which of the following is true?
a. All benefits from the subsidy will go to consumers.
b. Consumers and producers will split the benefits of the subsidy equally.
c. All benefits from the subsidy will go to producers.
d. Firms will receive relatively more benefits than consumers.
e. Consumers will receive relatively more benefits than firms.
Which of the following statements is correct about the overall effect of the subsidy?
Instructions: You may select more than one answer. Click the box with a check mark for correct answers and click to empty the box for the wrong answers.
a. The subsidy will cost the goverment more than the net benefit to consumers and producers.
b. Only producers will be better off.
c. Only the government will be better off.
d. The subsidy will clearly improve welfare for society as a whole.
e. Both consumers and producers will be better off.
Describe the google self-driving car brand marketing mix
: Where would you place the Google Self-Driving Car brand in the BCG Growth Share Matrix and the Product Life Cycle? Why?
|
What is the price elasticity of demand
: What is the price elasticity of demand? Can the elasticity be characterized as elastic, inelastic, or neither? What does this mean and why does it matter
|
What do you think is your greatest strength as a listener
: What do you think is your greatest strength as a listener? What do you feel is your greatest weakness?
|
Discuss the mechanism of action of these drugs
: Discuss the mechanism of action of these drugs, and relate to the underlying pathogenesis of an Acute Severe Asthma
|
Encouraging the consumption of humbugs
: The pre-subsidy price of Humbugs was $50. There are no additional social benefits to encouraging the consumption of Humbugs.
|
What company will you research
: What kinds of sources (for example, company website, annual report, government websites, and library articles) do you plan to use for research?
|
What are the benefits of subsidizing products
: 1.In the United States, many agricultural products (such as corn, wheat, and rice) are subsidized. What are the benefits of subsidizing these products?
|
Discuss the role of a project sponsor in a project
: Discuss the role of a Project Sponsor in a Project. What are requirements and why do we need them in a project- Discuss .
|
What community resources might be important to you
: Volunteers and political officials in local communities often campaign to improve conditions and provide services to increase the well-being of individuals.
|