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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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Question 1: (a). Elaborate using examples, two advantages the internet provides to direct marketers. (b). Apart from online marketing as a form of direct marketing, de
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As discussed in the video lectures for this module, the president plays many different roles: Chief of State; Chief Executive; Chief Diplomat; Commander-in-Chief; Chief Legislator.
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