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What is a subsidy wedge

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What is a subsidy wedge?

The difference between the price that sellers receive and the price that buyers pay resulting from a subsidy.

The difference between the price that sellers receive and the price that buyers pay resulting from a commodity tax.

The difference between the amount of a good that is produced before and after a subsidy is imposed.

The combined reduction in consumer surplus and producer surplus that results from a subsidy.

The amount by which a subsidy increases the price firms receive for their good.

Government cheese.

The difference between quantity supplied and the quantity demanded that results from a subsidy.

The amount by which a subsidy reduces the price that buyers pay for a good.

Reference no: EM131265968

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