Quickie on Subsidies.... (1 Viewer)

[derek_]

how do you calculate the size of the subsidy per unit granted if you were given a diagram? or is there a formula for it?....

if you want to refer to a specific example of this question, try page 15 in the second edition of the leading edge year 12 hsc economics workbook..it's the Q7 multi choice =/

 

[miffytoki]

what info do they give u?

 

[Ryan_Kill]

i tried that question.....didnt know what they were talking about. My teacher said it is very unlikelt we will come up against something like that in the actual hsc, but it still worried me.

 

[derek_]

yeh ... i actually got the answer by fluke through minusing the top supply curve by the bottom supply number value =/

 

[KungPow]

Is it anything like the question in the 2003 CSSA?

I think for that question you had to compare the equilibrium price with the subsidy against the price without the subsidy at the same quantity demanded. That would give you the subsidy for that quantity demanded...hope that made sense...

 

[ar5ena1]

the answer to that question from the cssa trial 2003 is 4$ per kg mate. you take the vertical difference between the new price and the lowest indicated price on the curve, then divide it by the quality increase = 4/1 so 4$/kg.