Answer to Question #109847 in Microeconomics for Jay Mehta

Question #109847
Can’t a subsidy also serve to reduce inefficiency resulting in less deadweight loss?
1
Expert's answer
2020-04-15T09:56:31-0400

No, the deadweight loss due to a subsidy is a form of economic inefficiency. It's areduction in consumer and producer surplus, and is a result of the fact that thesubsidy causes more than the socially best amount of the good is produced. And what is produced is sold at too low a price


Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be the first!

Leave a comment

LATEST TUTORIALS
New on Blog
APPROVED BY CLIENTS