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When the supply is more inelastic than demand, steeper supply curve and a flat demand curve would be drawn. With the subsidy, the supply curve shift downwards from S1 to S2, price decreases from P1 to P2 and the quantity demanded increases from Q1 to Q2.

The producers’ share is (P3-P1)xQ2 while consumers’ benefit is (P1-P3)xQ2, and the consumers’ share is smaller than the producers’ share. Therefore, consumer will not receive a larger share of subsidy.

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When the supply is less elastic than demand, the supply curve is shifted from s1 to s2. The consumers share of subsidy is smaller than the producers share of subsidy. The decrease in price that the consumers pay (from p0 to p1) is smaller than the increase in the price that producers receive (from p0 to p2)Therefore the area of consumers share of subsidy is smaller than the area of producers share of subsidy. When supply is inelastic and the the demand is elastic, the producers receive most of the subsidy.

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Thapa Christine Joy Ganal 4D13

The supply shifts downwards from S0 to S1 and the quantity transacted moves from Q0 to Q1. Since subsidy is imposed, the supply is inelastic, meaning the consumer’s share will bare less subsidy than producers’ do.

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Isobel Maung

When the elasticity of demand is larger than the elasticity of supply, the decrease in price from P0 to P1 (decrease in market price or consumers’ share) is smaller than the difference between P1 and P2 (producers’ share after subsidy). Producers share will be larger than consumer’s share, and the consumer may not receive a larger share of subsidy

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4B20 Alison Ng

The supply curve shifts downwards from S1 to S2, the quantity transacted increases from Q1 to Q2, price decreases from P1 to P2. It’s given that the supply curve is inelastic, meaning that the consumers are more price sensitive. It’s also seen in the graph that the producers’ benefit it larger than the consumer’ benefit, meaning that the consumers’ may not be able to receive the same amount of subsidies the producers’ do.

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as a unit subsidy is provided, the supply increases from s1 to s2. the quantity transacted increases from q1 to q2 as the price decreases from s1 to s2. the consumer’s demand is elastic while the supply is inelastic. as the elasticity of demand is larger than the elasticity of supply, the consumer will not receive a larger share of the subsidy.

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Naomi Yuen 4a23

(the supply curves shld be more steep whoops

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When a unit subsidy is provided the supply curve shifts downwards from S1 to S2, the quantity transacted increases from Q1 to Q2, and the price decreases from P1 to P2. As the elasticity of supply is smaller and more inelastic than the elasticity of demand, the consumers’ share is smaller than the producers’ share. Hence, the consumer won’t receive a larger share of subsidy.

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Subsidy lead to the increase in supply . The price will increases and the quantity will rise . If the elasticity of supply is lower than the elasticity of demand , the consumer’s subsidy benefit is smaller than the producer ‘s subsidy benefit.

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After a unit subsidy is provided, the supply curve shifts downwards from S1 to S2. The quantity transacted will increase from Q1 to Q2, and the price will decrease from P1 to P2. As the consumer is more price-sensitive in this case given the supply is inelastic, when the elasticity of supply is smaller than elasticity of demand, the consumers’ subsidy benefit is less than producers’ subsidy benefit. The consumers will not be able to receive a larger share of subsidy in this case.

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4D 19 Trinity : After subsidy is provided the supply increases from s1 to s2. When the elasticity of supply is smaller than the elasticity of demand, the decrease in price the consumer pays is less than the increase in revenue enjoyed by the producers. Therefore, the producer’s share of subsidy if more than the consumer’s share

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After the provision of a subsidy, the supply curve shifts downwards from s1 to s2. When the supply is less elastic than the demand, the decrease in the price from p1 to p2 the consumers have to pay is smaller than the increase in the price the producers receive, the consumers’ share of the subsidy is smaller than the producers’ share of the subsidy and so the consumer may not receive a larger share of subsidy.

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After the unit subsidy is provided, the supply of the good will increase, from S1 to S2. The equilibrium price is decreases from P1 to P2 and the quantity transacted increases from Q1 to Q2. When the elasticity of supply is smaller than the elasticity of demand, the producers share will be larger than the consumers share, therefore the producers receive a larger share of subsidy even if the consumers are price sensitive.

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Candace Yu 4D21

When a subsidy is provided, the supply curve increases from s1 to s2, the quantity transacted increases from Q1 to Q2, and the prize decreases from P1 to P2. As the demand is elastic and the supply is inelastic, the decrease in price will be less than the subsidy enjoyed by the producers. Therefore, the consumer will not receive a larger share of subsidy.

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Felicia Lui 4B 14

Even the elastic consumer is sensitive to the price adjustment, however if the price remain high due to the inelastic supply. The producer cannot easily increase the quantity supplied. Then they will retain the subsidy benefit rather than decrease the price. Due to this situation, the elastic consumer might not benefit from the subsidy.

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Momo Man 4B18

When subsidy is imposed, the supply of product will increase from S to S1, quantity will increase from Q to Q1, and due to the decrease in cost of production, the price of product will also decrease from Q to Q1. When demand is more elastic than the supply, the percentage increase in quantity will be smaller then the percentage decrease in price. Therefore, the subsidy that the producer take will be larger than the price decrease in price.

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When a tax is imposed, supply curve increase from S1-S2, the price decrease from P1-P2, and the quantity transacted increase from Q1-Q2. As the price decrease is much more smaller than the subsidy that the producers got because of the elastic demand curve and the inelastic supply curve, the elasticity of demand is larger than the elasticity of supply, therefore the consumer will not receive a larger share of subsidy.

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as the producer provides the supply and the consumer is the demand, when the producer's supply is inelastic but the consumer's demand is more elastic than the supply, the inelasticity makes the price not decrease as much as the change in the amount paid by the consumer. So, when there is a subsidy from the government, the consumer will not benefit as much as the producer.

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Vanessa Yeung

After the provision of a subsidy the price will decrease from p1 to p2 while the quantity transacted will increase from q1 to q2, the cost of production decreases so the supply will increase from s1 to s2. When the demand is more elastic than the supply, the decrease in the price the consumer pays is smaller than the increase in the price the producer receives. So the consumer’s share of the subsidy is smaller than the producer’s subsidy benefit.

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Because decrease in price is smaller than increase in quantity demanded.

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when then supply is inelastic, meaning the quantity supplied does not change significantly with price fluctuations due to perhaps production factors,a subsidy may not greatly benefit price-sensitive (elastic) consumers who are highly responsive to price changes.

a subsidy is a government payment aiming to reduce costs for consumers or producers, to lower prices or increase supply. howwver, with inelastic supply, the quantity supplied cannot increase freely and flexibly, so prices may not decrease significantly. this results in how the benefits of the subsidy mainly go to the producers (who earn higher profits) or less price sensitive consumers (those less affected by price changes, having a rather inelastic demand). while elastic consumers experience less price reductions.