Consider the market for education. Let the Government provide a subsidy to the U

Question

Consider the market for education. Let the Government provide a subsidy to the Universities. This policy will have the greatest benefit if:

A, the demand function is more inelastic

B, the supply function is more inelastic

C, the supply function is more elastic

D, the demand function is more elastic

2.) Consider an electric company that generates atmospheric pollution. Supposed the Government imposes tax directly on consumers who buy electricity. This will have the greatest effect on pollution control if:

A, the supply of electricity is relatively elastic

B, the demand of electricity is rel. elastic

C, the supply of electricity is rel. inelastic

D the demand of electricity is rel. inelastic

Explanation / Answer

1)C, the supply function is more elastic

2)B, the demand of electricity is rel. elastic

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects