1 / 12

Per-unit subsidy

Per-unit subsidy ( 從量津貼 ). P ($). S 1. S 2. Per-unit subsidy. Q. P 1. P 2. Q 1. Q 2. Incidence of per unit subsidy. P ($). S 1. S 2. R. Total Amount of Subsidy. Producer’s benefit. Per-unit subsidy. Consumer’s benefit. D. Q. P 1. P 2. Q 1. Q 2.

Download Presentation

Per-unit subsidy

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Per-unit subsidy (從量津貼) P ($) S1 S2 Per-unit subsidy Q

  2. P1 P2 Q1 Q2 Incidence of per unit subsidy P ($) S1 S2 R Total Amount of Subsidy Producer’s benefit Per-unit subsidy Consumer’s benefit D Q

  3. P1 P2 Q1 Q2 Incidence of per unit subsidy (supply is more elastic than demand) P ($) S1 S2 Total Amount of Subsidy Producer’s benefit Per-unit subsidy Consumer’s benefit D Q

  4. P1 P2 Q1 Q2 Incidence of per unit subsidy (demand is more elastic than supply) P ($) S1 Total Amount of Subsidy Producer’s benefit S2 Per-unit subsidy Consumer’s benefit D Q

  5. Under what conditions will consumers get the amount of subsidy? • 在甚麼情況下,消費者可以得到整部份的津貼?

  6. When the demand is perfectly inelastic (|Ed|=0),… (e.g., medicine for curing cancer (治療癌症藥物)) D P ($) S1 P1=50 S2 Total amount of subsidy Consumer’s benefit Per-unit subsidy P2=40 Q Q =10

  7. When the supply is perfectly elastic (|Es|=∞),… P ($) P1 S1 Total Amount of Subsidy Consumer’s benefit Per-unit subsidy P2 S2 D Q Q1 Q2

  8. Under what conditions will producers get the amount of subsidy? • 在甚麼情況下,生產者可以得到整部份的津貼?

  9. When the demand is perfectly elastic (|Ed|=∞),… P ($) S1 S2 Total amount of subsidy Producer’s benefit Per-unit subsidy P1 D Q Q1 Q2

  10. When the supply is perfectly inelastic (|Es|=0),… (e.g., tunnel, stadium) P S1 S2 Q 40,000 50,000

  11. When the supply is perfectly inelastic (|Es|=0),… S1 =S2 P ($) Total Amount of Subsidy Producer’s benefit Per-unit subsidy P1 D Q Q1

More Related