Answer to Question #100226 in Microeconomics for syaa

Question

Impacts of subsidies on the gas market in Malaysia and explain the factors that have driven the increasing domestic demand for gas

Answer 1

Subsidies on the gas market in Malaysia can decrease the price for gas and increase the quantity demanded, but the government expenditures will increase, and the deadweight loss will occur.

Factors on the demand-side include weather, economic conditions, and petroleum prices.