O $119 he government wants to transfer welfare from buyers to selers by collecti

Question

O $119 he government wants to transfer welfare from buyers to selers by collecting a s1 tax O increase the equilibrium quantity O decrease the equilibrium quantity 0 decrease the equilibrium price O increase the equilibrium price on a good from buyers and subaidizing sellers $1 for each unit of the good sold. This policy will .If the government subsidizes the production of a good O total surplus is higher than it would have been without the subsidy O consumer surplus and producer surplus both faill. O deadweight loss results because too much of the good is exchanged deadweight loss results because not enough of the good is exchanged.

Explanation / Answer

Solution :- 1 The correct answer is (c) Decrease the Equilibrium Price

Solution :- 2 The correct answer is (A) Total surplus is higher than it would have been without subsidy

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