During the recession, the government implemented a cash for clunkers problem where it subsidized dealers who...
During the recession, the government implemented a cash for clunkers problem where it subsidized dealers who allowed customers to trade in their used cars for a discounted new car
a. Graph the initial market for new Subaru cars. Consumers can choose between many different car brands, but Subaru only is able to sell cars (think about how that would affect the relative slope of the demand and supply curve and make this clear on the graph). Label the axis, the curves, and P* and Q*
On the above graph, show how this subsidy on sellers would affect the market. Label P**, Q**, PD
c. If the government wants buyers of new cars to benefit more from this subsidy than sellers, can it simply pay the subsidy to consumers instead of producers? Why or why not?
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During the recession, the government implemented a cash for
clunkers problem where it subsidized dealers who...
wanna check final answer I already did it Taxation Suppose now the government decides to intervene the market with...
wanna check final answer I already did it
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