Tuesday, November 4, 2014

Chapter 8 Questions



1. If the government subsidizes a product, what will happen?
                a. will you have a shortage or surplus?
                c. will you have deadweight loss?
                e. will you have a change in consumer surplus?
                f. will you have a change in producer surplus?
                g. who will be happier?
                h. who will be sadder?

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