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Economics Help!
Beef Offline
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#1
10-27-2005, 01:59 PM
Does anyone know about Economics? If so, help me with this please.

You have normally sloped supply and demand curves (not perfectly (in)elastic). If a law is passed giving the producers a 75 cent subsidy for each product sold, will there be any deadweight loss? And if so, where?


--So far I have that the supply curve will shift down but I can't identify where any loss would be.


TIA :thumb:
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Pirate Pal Offline
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#2
10-27-2005, 02:10 PM
Beef Wrote:Does anyone know about Economics? If so, help me with this please.

You have normally sloped supply and demand curves (not perfectly (in)elastic). If a law is passed giving the producers a 75 cent subsidy for each product sold, will there be any deadweight loss? And if so, where?


--So far I have that the supply curve will shift down but I can't identify where any loss would be.


TIA :thumb:

The loss will be in the consumers pocket.:bounce:
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Beef Offline
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#3
10-27-2005, 03:00 PM
Pirate Pal Wrote:The loss will be in the consumers pocket.:bounce:
Wrong...it actually would help the consumer. And with some products, the consumer could see more of that subsidy than the producer. :Thumbs:
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