Effect of Government Subsidies - Economics Help
https://www.economicshelp.org/blog/915/economics/effect-of-government-subsidies/
In the US and EU, the biggest government subsidies are given to farmers. This is not because agriculture gives positive externalities, but it has become an important political pressure group. Subsidies often come indirectly. 1. Through guaranteeing minimum prices (the government buys the surplus to maintain … See more 1. If demand is elastic, then a subsidy causes a bigger percentage rise in demand. There is only a small fall in pric… 1. It would be expensive; the government would have to raise a significant amoun… 2. There is an argument that when government subsidises firms, it reduces …
1. If demand is elastic, then a subsidy causes a bigger percentage rise in demand. There is only a small fall in pric…
1. It would be expensive; the government would have to raise a significant amoun…
2. There is an argument that when government subsidises firms, it reduces …
DA: 25 PA: 16 MOZ Rank: 70
