Question

A price subsidy for Y would be more effective than an income subsidy of equal magnitude...

A price subsidy for Y would be more effective than an income subsidy of equal magnitude in encouraging the consumption of Y( Graphically Illustrate)

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A simple subsidy (s) reduces the price of a good from P to P-s. In contrast,...
A simple subsidy (s) reduces the price of a good from P to P-s. In contrast, a voucher scheme grants to the consumer the ability to consume a stated quantity of the good (label it X1s on the horizontal axis) in exchange for the voucher (which has no cost). A: Illustrate and explain why a voucher scheme would be particularly effective in encouraging the consumption of the vouchered good for consumers who would otherwise have chosen little or none of...
Why does an excise subsidy on health care expand health care consumption more than a lump-sum...
Why does an excise subsidy on health care expand health care consumption more than a lump-sum subsidy on health care?
1. Impact on the budget line of a simultaneous increase in the price of Y snd...
1. Impact on the budget line of a simultaneous increase in the price of Y snd a decrease in income(graphically illustrate)
Suppose the government of the island has decided to give consumers a more attractive price for...
Suppose the government of the island has decided to give consumers a more attractive price for tomatoes by imposing a fixed, per unit subsidy. Thus, start with the original demand (Qd = 600 - 100P) and supply (Qs = 50P) and analyze this new intervention, the subsidy. The subsidy works like this: each tomato seller receives a 3-dollar refund for each tomato sold. • Write down the equation for the new "effective supply" curve. • Determine the new equilibrium quantity...
The government is considering variou s subsidy and incentive programs to induce low - income families...
The government is considering variou s subsidy and incentive programs to induce low - income families to live in better quality housing than they would otherwise live in. Three plans are i. Income subsidy: provide additional income I to a family that can be spent in any way. ii. Price subsidy: pay a fixed percentage p of a family’s rent. iii. Voucher: pay an amount s toward a family’s rent, provided the normal rent is at least R. Suppose commodities...
Fiscal policy would be more effective than monetary policy during a typical recession and financial crisis....
Fiscal policy would be more effective than monetary policy during a typical recession and financial crisis. Why?
14. According to the Keynesian Cross model of income, how would each of the following shocks...
14. According to the Keynesian Cross model of income, how would each of the following shocks affect a nation’s real aggregate income (Y) in the short run, all else equal? For each shock, be sure to clearly state a predicted direction of change for income, illustrate your prediction with a Keynesian Cross Diagram, and explain your predictions intuitively in words.a.Government purchases decline b. Congress cuts household income taxes c. Autonomous consumption increases d.Total factor productivity increases
Why will a monopolist that is able to perfectly price discriminate sell more than a non-...
Why will a monopolist that is able to perfectly price discriminate sell more than a non- discriminating monopolist? Use diagrams to illustrate your answers
The value of the price elasticity of demand for good y is equal to -2.0 this...
The value of the price elasticity of demand for good y is equal to -2.0 this would imply that the price elasticity of demand for good y is: Select one: a. inelastic b. unit elastic c. the elasticity cannot be determined with the information given d. elastic
Suppose the cross-price elasticity of demand between goods X and Y is 5. How much would...
Suppose the cross-price elasticity of demand between goods X and Y is 5. How much would the price of good Y have to change in order to change the consumption of good X by 20 percent? percent
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT