Subsidies And Indirect Taxes Flashcards
(6 cards)
1
Q
What can subsidies and indirect taxes do?
A
Affect consumers and produces
2
Q
What can subsidies and indirect taxes be used for?
A
Encourage demand
3
Q
What is a subsidy?
A
Money paid by the government to the producer of a good to make it cheaper.
4
Q
What do subsidies do?
A
Encourage increased production and a fall in price
5
Q
What does a subsidy do to a supply graph?
A
shifts right
6
Q
What if a price elastic demanf curve
A
