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Per-unit subsidy ( 從量津貼 ). P ($). S 1. S 2. Per-unit subsidy. Q. P 1. P 2. Q 1. Q 2. Incidence of per unit subsidy. P ($). S 1. S 2. R. Total Amount of Subsidy. Producer’s benefit. Per-unit subsidy. Consumer’s benefit. D. Q. P 1. P 2. Q 1. Q 2. - PowerPoint PPT Presentation
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Per-unit subsidy
S1
S2
P ($)
Q
Per-unit subsidy (從量津貼 )
P1
Q1
P2
Q2
Per-unit subsidy
S1
S2
D
Incidence of per unit subsidy
P ($)
Q
R
Total Amount of Subsidy
Producer’s benefit
Consumer’s benefit
P1
Q1
P2
Q2
Per-unit subsidyTotal Amount of Subsidy
Producer’s benefit
Consumer’s benefit
S1
S2
D
Incidence of per unit subsidy (supply is more elastic than demand)
P ($)
Q
P1
Q1
P2
Q2
Per-unit subsidyTotal Amount of Subsidy
Producer’s benefit
Consumer’s benefit
S1
S2
D
Incidence of per unit subsidy (demand is more elastic than supply)
P ($)
Q
• Under what conditions will consumers get the amount of subsidy?
• 在甚麼情況下，消費者可以得到整部份的津貼 ?
Unit Price Qd
10 10
20 10
30 10
40 10
50 10
60 10
Qs
2
4
6
8
10
12
Unit Price after subsidized
(unit subsidy=$10)
0
10
20
30
40
50
Per-unit subsidy
S1
S2
P ($)
Q
D
P1=50
P2=40
Total amount of subsidyConsumer’s benefit
Q =10
When the demand is perfectly inelastic (|Ed|=0),…
(e.g., medicine for curing cancer (治療癌症藥物 ))
When the supply is perfectly elastic (|Es|=∞),…
P1
Q1
P2
Q2
Per-unit subsidy
Total Amount of SubsidyConsumer’s benefit
S1
S2
D
P ($)
Q
• Under what conditions will producers get the amount of subsidy?
• 在甚麼情況下，生產者可以得到整部份的津貼 ?
Per-unit subsidy
S1
S2
P ($)
Q
DP1
Total amount of subsidyProducer’s benefit
Q1
When the demand is perfectly elastic (|Ed|=∞),…
Q2
P
Q
S1 S2
40,000 50,000
When the supply is perfectly inelastic (|Es|=0),…
(e.g., tunnel, stadium)
When the supply is perfectly inelastic (|Es|=0),…
P1
Q1
Per-unit subsidyTotal Amount of SubsidyProducer’s benefit
S1
D
P ($)
Q
=S2
