Question
For the following provide concise, well structured answers. (a) Suppose a government is considering to choose a market to give a per-unit subsidy based on
For the following provide concise, well structured answers. (a) Suppose a government is considering to choose a market to give a per-unit subsidy based on estimates of price elasticity of demand and supply. They want to deliver it to a market where the deadweight loss would be smallest. Assume all markets have the same pre-subsidy equilibrium price and quantity. Evaluate whether the following statement is True, False or Uncertain, and explain by using a diagram/s. It is better to choose a market where the demand curve is relatively inelastic than the supply curve. (b) Define for each type of price discrimination. Provide real life examples for each (Note, not from the textbook and the lecture).
I really need someone can show me the digram for each question and explain that for me
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