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A price floor sets a minimum price for a product, while a subsidy provides financial assistance to producers. Price floors can lead to surpluses and reduced consumer demand, while subsidies can lower prices and increase consumer demand. Both can impact market dynamics and consumer behavior by influencing prices and production levels.

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4mo ago

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How education subsidy s different from home or car subsidy?

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What is the purpose of a government subsidy?

The subsidy encourages whoever gets it to continue doing whatever he does to get it. It also encourages him to vote for any politicians that helped get his subsidy. ( The stated intent of a subsidy is to encourage behavior which benefits the country. )


How is a price floor different from a subsidy in terms of their impact on market dynamics and government intervention in the economy?

A price floor sets a minimum price for a good or service, while a subsidy provides financial assistance to producers. Price floors can lead to surpluses and inefficiencies, while subsidies can increase supply and lower prices. Both involve government intervention in the economy, but in different ways.


What are some different subsidy types?

There a number of different subsidy types available. One of the most common is a cash grant subsidy. Other types include tax concessions, in-kind subsidies, cross subsides, derivative subsidies and credit subsides.


What impact does a lump sum subsidy have on a monopoly's market power and pricing behavior?

A lump sum subsidy reduces a monopoly's costs, increasing its market power and potentially allowing it to lower prices to attract more customers.


What are some different type?

There a number of different subsidy types available. One of the most common is a cash grant subsidy. Other types include tax concessions, in-kind subsidies, cross subsides, derivative subsidies and credit subsides.


What is an example sentence of subsidy?

Section 8 housing is a rental subsidy.The subsidy provided $225 dollars toward burial expenses.The US government can provide subsidy monies to citizens.


How can you get a free subsidy password for your Motorola RAZR?

I don't think you can get free subsidy codes for this mode.. but you can get affordable subsidy codes from Theunlockspot.com


Can you use subsidy in a sentence?

The company needed subsidy to get their business running.


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Yes they do need subsidy they need money to build and the farmers get money for having a wind turbine in their farm they get subsidy very very high subsidy all from the tax payer


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Do Swedish farmers get EU subsidy?

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