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What are subsidies?
Almost in all market systems, government plays its role to stabilize the price of certain commodities, which are of public interest like medicines and edibles etc. For this, government give some incentives to producers to produce particular commodities, that is, to keep the supply and price of those commodities stable at certain level .These incentives, given to the producers, are known as subsidies.
Income Elasticity of Demand is described below: Income elasticity of demand is the percentage change in the quantity demanded/required with respect to the percentage change in
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veblen effect
1. Calculate price elasticity of demand and supply for the following functions when (a) P=8 and (b) Q=6. i. P= 40 - 0.5Q ii. Q= -40 + 0.75P iii
how the increase in price will affect consumer''s ability to maximise satisfaction?
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Critique on Earmarking Studying the working of earmarking in many OECD (organisation of economic cooperation and development) countries, Potter and Diamond (1999) pointed out
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