Economics A Level: What is the Purpose of
1. Governments dishing out Subsidies
2. Governments taxing a Good (Indirect Taxe)

Question

What is the Purpose of
1. Governments dishing out Subsidies 
2. Governments taxing a Good (Indirect Taxe)

go kys · Accepted Answer

1. Subsidies are attempting to Encourage Demand for a Good. Subsidies is Money paid by the Government to the Producer to make it Cheaper.
2. Indirect Taxes aim to Reduce Demand for certain Goods. Since the Price goes up, the aim is that the Quantity Consumed falls as the Market Price has risen

Economics A Level

What is the Purpose of 1. Governments dishing out Subsidies 2. Governments taxing a Good (Indirect Taxe)

1. Subsidies are attempting to Encourage Demand for a Good. Subsidies is Money paid by the Government to the Producer to make it Cheaper. 2. Indirect Taxes aim to Reduce Demand for certain Goods. Since the Price goes up, the aim is that the Quantity Consumed falls as the Market Price has risen

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