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Author Question: What is the impact of a government subsidy to producers? (Read 48 times)

jman1234

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What is the impact of a government subsidy to producers?
◦ Less is produced relative to the efficient level, creating a deadweight loss.
◦ More is produced relative to the efficient level, creating a deadweight loss.
◦ Producer surplus is increased, which creates a larger consumer surplus.
◦ Producers are able to sell the product at a higher price.
◦ Consumers must pay a higher price for the good.


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Marked as best answer by jman1234 on May 24, 2019

Anton

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jman1234

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Thank you!



Anton

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Always glad to help...



 

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