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Economics, Accounting & Business: Post your doubts here!

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The graphs are presented above. When the government announces subsidy for a firm, the supply curve for the firm shifts rightwards and it means that it has increased, due to this, the cost of the product decreases. However, in case of perfectly elastic demand, the provision of subsidy has little or no effect on the price level.
That means for perfectly inelastic supply also there is no effect on price right?
 
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The graphs are presented above. When the government announces subsidy for a firm, the supply curve for the firm shifts rightwards and it means that it has increased, due to this, the cost of the product decreases. However, in case of perfectly elastic demand, the provision of subsidy has little or no effect on the price level.
and if it is normal inelastic/elastic demand , then who will bear most of the subsidies burden
 
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and if it is normal inelastic/elastic demand , then who will bear most of the subsidies burden
Tax is a burden, subsidy is paid to the producer in case he's producing merit goods and thus generating positive externality. Subsidy allows the output to be reached at SOL/Optimum resource allocation point/Pareto opitmality point.
 
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Tax is a burden, subsidy is paid to the producer in case he's producing merit goods and thus generating positive externality. Subsidy allows the output to be reached at SOL/Optimum resource allocation point/Pareto opitmality point.
Who is going to benefit more(producr or consumers) ...if it is elastic and inelastic demand and supply curves
 
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Whole Section?
There must be some questions you could do? Try to answer then and check if you did so correctly by matching them with MS!
No man, im like totally blank with equi marginal principles and all that.. Got any good notes?
 
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Someone have tips or sample answer on how to answer business studies paper 3 section B.please share.thank you
 
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1) Just consider it a simple asset a business uses. During the period of Inflation, it's money value would rise but the real value would remain the same. Answer is B
I'll answer the rest tomorrow, Insha'Allah. Really tired now and I've my mock exam tomorrow. :)
good luck
 
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