Determine if the items below are characteristics of taxes, subsidies or both. Assume that markets are perfectly competitive.

Business

1 answer:

Allisa [31]3 years ago

5 0

Answer:

1) subsidies as the seller will receive a higher amount that the market price

2) taxes because traslation effect considering demand price-elasticity

3) taxes

4) subsidies will increase the amount recieve by sellers. (for taxes it act as a intermediate it retains the taxes levied and then has to give them to the government thus, aren't an increase in they proceeds

5) taxes, the subsidies are government espending

6) taxes, because traslation effect.

Explanation:

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