benefits of subsidies

Q: Draw a product supply and demand graph showing a ceiling and a floor as usually created by a…

A: An individual’s willingness to pay for each unit of the quantity he or she wishes to consume is…

Q: what are the ultimate effects to society of shortfalls of tax collection

A: The shortfalls of tax collection lead to a decrease in public spending which leads to a decrease in…

Q: What will the federal government do to taxes?

A: The federal government uses fiscal policy as a tool to achieve economic stability.This involves…

Q: The government often meddles in markets, using price ceilings and price floors and taxes which move…

A: Government intervention in markets through mechanisms like price ceilings, price floors, taxes, and…

Q: What will happen if the government shuts down, will gas prices go up?

A: Yes, the prices of the gas will definately be affected if the government shut downs.Since, it is the…

Q: “Because consumers as a group must ultimately pay the total income received by farmers, it makes no…

A: ANS This claim is primarily Incorrect because of two points. They are: First, taxpayers are not…

Q: Why do most economists oppose price ceilings and price floor? What are their negative consequences?

A: The government determines the maximum price for a good or service. Price ceilings keep prices from…

Q: On a graph of the labor market, show the effects of an increase in the payroll tax

A: A labor market is a place where labor services are exchanged for wages. It is a market of demand and…

Q: Governments often attempt to boost the income of some agricultural producers with a variety of…

A: 1. Quotas:Quotas restrict the quantity of a particular agricultural product that can be produced and…

Q: How does a tax on a good affect the price paid by buyers, price receive by sellers, and the quantity…

A: Tax is a term that defines a charge imposed by the ruling authority, that is government, on market…

Q: How can tax incidences have a positive and negative impact on the economy?

A: Tax incidence refers to the burden of a particular tax that is imposed by the government.

Q: Would consumer or producer carry the burden of tax if good is elastic? Show on a graph

A: The tax burden is decided based on the elasticity of demand and supply. If elasticity of demand is…

Q: How Much Do Cigarette Taxes Reduce Smoking?

A: As demand of cigarette is inelastic, the producers can increase the price by greater units after the…

Q: The current market price of bananas is $1 per pound. Use a graph and words to show the effect of a…

A: The market price of bananas is $1 per pound. A ten cent tax on each pound of bananas will shift the…

Q: What is a government price floor? What is one benefit? What is one cost?

A: A government price floor is a type of price control by the government to set some lower bounds on…

Q: What is Market Distortion and its potential long-term effect? Please explain thank you.

A: A market is the set of suppliers and demanders whose trading establishes the price of a good. Firms…

Q: In a country the Government determines to increase the tax on gasoline by $0.20 per gallon. The…

A: A tax is implied on gasoline. The value of tax is $0.2. With the implementation of the tax, the…