Economics A Level: Show, using a Supply Demand Diagram the Total Cost to the Government that comes from a Subsidy

Question

Show, using a Supply Demand Diagram the Total Cost to the Government that comes from a Subsidy

go kys · Accepted Answer

-Supply will Shift to the Right.
-The Points that Mark the Total Gain are: The New Equilibrium Point, The Equilibrium Price, Point that has the Same Q as the Equilibrium Point but lies on the Old Supply Curve, and its Respect Price.

Economics A Level

Show, using a Supply Demand Diagram the Total Cost to the Government that comes from a Subsidy

-Supply will Shift to the Right. -The Points that Mark the Total Gain are: The New Equilibrium Point, The Equilibrium Price, Point that has the Same Q as the Equilibrium Point but lies on the Old Supply Curve, and its Respect Price.

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