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Why is each of the following answers correct or incorrect? The government has instituted a subsidy (paid to the buyers) of 3000 pounds per electric
Why is each of the following answers correct or incorrect?
The government has instituted a subsidy (paid to the buyers) of 3000 pounds per electric car bought in 2017. The electric car industry is competitive. Which of the following statements are correct? a. Buyers gain more from the subsidy than sellers if demand is more inelastic than supply. _ b. The nal price paid by consumers of electric cars will increase by 3000 if supply is perfectly inelastic. c. The deadweight loss caused by the subsidy is minimal if the elasticity of supply is inniteStep by Step Solution
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