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- เผยแพร่เมื่อ 30 มิ.ย. 2024
- What is a subsidy? A subsidy is really just a negative or reverse tax. Instead of collecting money in the form of a tax, the government gives money to consumer or producers. In this video, we look at the subsidy wedge and who benefits the most from different subsidies.
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00:00 Intro
00:34 What is a Subsidy?
01:31 The Subsidy "Wedge"
06:01 No Elasticity = No Entry
09:43 Example: California Cotton Farmers & Water Subsidies
Continue learning with practice questions: mru.io/32n
Your videos are always great and be made professionally!!! Thanks for all your hard work!
Absolutely useful and very understandable. Thanks a lot.
Have exam tomorrow and this helped me a lot 🙏🏾🙏🏾🙏🏾
That's pretty kewl. I learned something new today.
Thank you for this! Just one question: what software do you use to draw the graphs? I've been drawing on Paint and it's killing me...
Thank you for the wonderful video. I have a question, for the Agricultural commodity market (Very close to perfect competition) , Farmers have no where else to go. DOes 7:37 of the video imply that subsidy to the agricultural sector will result in no Dead Weight Loss?
Great explanation!
Thank you!!!! :)
Do you have a link for the lobbyist and politicians pushing these subsidies?
Thank you for the video.
Sir i have a question , will minimum price schemes on farm produce beneficial for farmers or farm subsidies on farm produce ?
My new Instructor!
is there excess demand and a deadweight loss with a subsidy?
How do we analyze total consumer surplus and total producer surplus after subsidy? Would there be overlapping areas in the diagram for each surplus?
bentuknya setengah trapesium bro masing2
Thank you very much!
I have a question. if the subsidy were for both (producer and consumer) and the government subsidy were in percentages (example 70%). how should the exercise be set up?
in a perfect market with a subsidy is consumer and producer surplus equal?
Depends on the elasticity
thank you!!!!
convoluted
So subsidies are like tariffs?
11:11
the subsidy is for water.
but the elasticity is for cotton.
shouldn't the comparison be for the elasticity of water to make a fair comparison?
But additionally, what actually are the dynamics and effects of a subsidy on an input good (capital good) depending on the elasticity of the produced good?
depending on how free market the public sector is....that is to say politically free, negates the deadweight loss. If i spend my vote/political energy or currency on politicians who support subsidies then where is the in efficiency...in fact politically calculated subsidies are imop strategically calculated price adjustments that correlate to public sector market values. These political values may be hard to represent initially.
why the supply curve is not shifting?
as a customer, I need to pay even more since legal poor statement in form of gov certificate is not on my pocket.
But then again not all public sector values are productive. Assuming humans will act in mostly rational ways, overtime subsidies will correct for public sector failures. for instance tax write offs such as for charity...in fact charity is far more efficient than taxes imop. but lets say a tobacco subsidy which might cost society externalities and be counterproductive...is still technically productive. in its isolation it weakens the economic power of those reliant upon it. So in conclusion some subsidies strengthen while others weaken.
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Whos here for Mr Morrissey IB?
Confused.
Subsidies= no free market
Yep. More government interference only distorts the overall market.
Bobby Lashley fucking statist
Indeed, I'm for the common good, when will you realize there's more to life than Iphones and bitches in bikinis
Bobby Lashley When will you realize the governments usefulness is limited?
When will you stop reiterating shapiro/yianno/basic bitch talking points, the government is useful lol
I can sum up this video as "government subsidies are always bad for the people and the economy".
Mass heric ha7[∆ spacehesp liy
is there excess demand and a deadweight loss with a subsidy?
Yes, there is a deadweight loss. Deadweight loss is produced either by to little trade of some good x (when society loses gains from trades which fail to occur) or by too much trade of that good. In the latter case society loses the value which it puts in the subsidy, since in the absence of the subsidy those resources could have been used for something else.
But there is no excess demand, because the definition of excess demand is an excess quantity demanded relative to the quantity supplied at a certain price. Or in other words, it is the difference between the demand function and the supply function, at any price. Questions of excess demand arise in the case of a price ceiling.
If we were to graph a price ceiling we would drive a horizontal wedge from below between supply and demand. That wedge shows the difference in quantity demanded and supplied. In contrast, subsidies drive a vertical wedge from the right side. It shows the difference in the price received by suppliers and price paid by demanders.