Per-unit subsidy
-
Upload
dominic-cherry -
Category
Documents
-
view
43 -
download
5
description
Transcript of Per-unit subsidy
![Page 1: Per-unit subsidy](https://reader036.fdocument.pub/reader036/viewer/2022062718/56812c4b550346895d90d14c/html5/thumbnails/1.jpg)
Per-unit subsidy
S1
S2
P ($)
Q
Per-unit subsidy (從量津貼 )
![Page 2: Per-unit subsidy](https://reader036.fdocument.pub/reader036/viewer/2022062718/56812c4b550346895d90d14c/html5/thumbnails/2.jpg)
P1
Q1
P2
Q2
Per-unit subsidy
S1
S2
D
Incidence of per unit subsidy
P ($)
Q
R
Total Amount of Subsidy
Producer’s benefit
Consumer’s benefit
![Page 3: Per-unit subsidy](https://reader036.fdocument.pub/reader036/viewer/2022062718/56812c4b550346895d90d14c/html5/thumbnails/3.jpg)
P1
Q1
P2
Q2
Per-unit subsidyTotal Amount of Subsidy
Producer’s benefit
Consumer’s benefit
S1
S2
D
Incidence of per unit subsidy (supply is more elastic than demand)
P ($)
Q
![Page 4: Per-unit subsidy](https://reader036.fdocument.pub/reader036/viewer/2022062718/56812c4b550346895d90d14c/html5/thumbnails/4.jpg)
P1
Q1
P2
Q2
Per-unit subsidyTotal Amount of Subsidy
Producer’s benefit
Consumer’s benefit
S1
S2
D
Incidence of per unit subsidy (demand is more elastic than supply)
P ($)
Q
![Page 5: Per-unit subsidy](https://reader036.fdocument.pub/reader036/viewer/2022062718/56812c4b550346895d90d14c/html5/thumbnails/5.jpg)
• 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 ?
![Page 6: Per-unit subsidy](https://reader036.fdocument.pub/reader036/viewer/2022062718/56812c4b550346895d90d14c/html5/thumbnails/6.jpg)
Unit Price Qd
10 10
20 10
30 10
40 10
50 10
60 10
Qs
2
4
6
8
10
12
Unit Price after subsidized
(unit subsidy=$10)
0
10
20
30
40
50
![Page 7: Per-unit subsidy](https://reader036.fdocument.pub/reader036/viewer/2022062718/56812c4b550346895d90d14c/html5/thumbnails/7.jpg)
Per-unit subsidy
S1
S2
P ($)
Q
D
P1=50
P2=40
Total amount of subsidyConsumer’s benefit
Q =10
When the demand is perfectly inelastic (|Ed|=0),…
(e.g., medicine for curing cancer (治療癌症藥物 ))
![Page 8: Per-unit subsidy](https://reader036.fdocument.pub/reader036/viewer/2022062718/56812c4b550346895d90d14c/html5/thumbnails/8.jpg)
When the supply is perfectly elastic (|Es|=∞),…
P1
Q1
P2
Q2
Per-unit subsidy
Total Amount of SubsidyConsumer’s benefit
S1
S2
D
P ($)
Q
![Page 9: Per-unit subsidy](https://reader036.fdocument.pub/reader036/viewer/2022062718/56812c4b550346895d90d14c/html5/thumbnails/9.jpg)
• Under what conditions will producers get the amount of subsidy?
• 在甚麼情況下,生產者可以得到整部份的津貼 ?
![Page 10: Per-unit subsidy](https://reader036.fdocument.pub/reader036/viewer/2022062718/56812c4b550346895d90d14c/html5/thumbnails/10.jpg)
Per-unit subsidy
S1
S2
P ($)
Q
DP1
Total amount of subsidyProducer’s benefit
Q1
When the demand is perfectly elastic (|Ed|=∞),…
Q2
![Page 11: Per-unit subsidy](https://reader036.fdocument.pub/reader036/viewer/2022062718/56812c4b550346895d90d14c/html5/thumbnails/11.jpg)
P
Q
S1 S2
40,000 50,000
When the supply is perfectly inelastic (|Es|=0),…
(e.g., tunnel, stadium)
![Page 12: Per-unit subsidy](https://reader036.fdocument.pub/reader036/viewer/2022062718/56812c4b550346895d90d14c/html5/thumbnails/12.jpg)
When the supply is perfectly inelastic (|Es|=0),…
P1
Q1
Per-unit subsidyTotal Amount of SubsidyProducer’s benefit
S1
D
P ($)
Q
=S2