Answer to Question #276700 in Microeconomics for Nalyn

Question #276700

How do taxes and subsidies determine the level of supply differently?

Expert's answer

Subsidies increase supply at every given price, shifting supply to the right.

Taxes decrease the supply hence the supply curve shifts to the left.

Learn more about our help with Assignments: Microeconomics

Comments

No comments. Be the first!

Leave a comment

Related Questions

1. Explain the difference between individual supply and market supply
2. define the concept of supply in the context of a public market
3. 2.6 Discuss how a cut in the budget of NSFAS would affect students learning in SA (20)
4. 2.5. Explain the economic impact of COVID 19 on the South African economy (20)
5. 2.5. Explain the economic impact of COVID 19 on the South African economy (20)
6. Question 12Which one of the following statements about a monopoly is true?A. The monopolist has a fl
7. Question 13If a monopoly market were to be replaced with a perfectly competitive market for the same