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The US government decides to subsidize solar panels. For each unit sold, the government pays $T to the buyer. Using a graph, show how this subsidy affects
i) consumer surplus, INCREASES-GREEN AREA
ii) producer surplus, INCREASES-BLUE AREA
iii) tax revenue FALLS
and iv) total surplus. FALLS red area
To get credit, please label the axis, all the lines and mark with letters the relevant areas.
5b. Does the subsidy lead to deadweight loss? If it does, show the deadweight loss in the graph and explain using your words why a deadweight loss might arise. If the subsidy does not lead to deadweight loss, explain why.
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1. In a perfectly competitive world of two individuals, A and B, and two goods, X and Y, if good X is a pure public good and good Y is a private good, a. Derive the Pareto Optim
The percent of sales one product earns in relation to total market sales for all products in that category.
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1. Describe Back to Nature’s target market. [5 marks] 2. Outline Back to Nature’s (business and marketing) objectives. [5 marks] 3. Describe and evaluate the promotional strategies
differences between selling and marketting
How should price be set on a product or service for the first time?
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