(a) Explain, with the use of diagrams, the different effects on the price and quantity of a product of the removal of a subsidy and the removal of an indirect tax on that product. [8] by CJB https://padlet.com/CJBurrows/57zul76dx1r1 en-us 2015-11-28 16:34:35 UTC 2023-02-04 13:28:33 UTC hello@padlet.com DIAGRAM CJBurrows https://padlet.com/CJBurrows/57zul76dx1r1/wish/83735033 You can use the letters to help analyse the effects.

]]> 2015-11-28 17:59:22 UTC https://padlet.com/CJBurrows/57zul76dx1r1/wish/83735033 Adrian + Adam https://padlet.com/CJBurrows/57zul76dx1r1/wish/83865019 Removing a subsidy will cause the quantity produced to be decrease where as removing a tax will cause the quantity to increase.

]]> 2015-11-30 12:16:06 UTC https://padlet.com/CJBurrows/57zul76dx1r1/wish/83865019 https://padlet.com/CJBurrows/57zul76dx1r1/wish/83865179 From the digram we can see that removal of subsidy will shift the supply diagram to the left, which will cause price to increase and quantity demanded to decrease.

]]> 2015-11-30 12:17:24 UTC https://padlet.com/CJBurrows/57zul76dx1r1/wish/83865179 Anthony and Victor https://padlet.com/CJBurrows/57zul76dx1r1/wish/83865476 Removal of tax

supply would increase.

Price would decrease(P to P1)

Quantity would increase(q toq1)

removal of subsidy

Supply would decrease (s to s1)

Price would increase

Quantity would decrease

]]> 2015-11-30 12:19:32 UTC https://padlet.com/CJBurrows/57zul76dx1r1/wish/83865476 Salim and Andy  https://padlet.com/CJBurrows/57zul76dx1r1/wish/83865640 From the diagram we can notice that removal tax will shift the supply line to the right, which will cause the price to decrease and quantity increase.

]]> 2015-11-30 12:20:41 UTC https://padlet.com/CJBurrows/57zul76dx1r1/wish/83865640 Adrian + Adam https://padlet.com/CJBurrows/57zul76dx1r1/wish/83865748 Removing a subsidy will cause the consumer surplus to decrease which means less of the good will be produced

]]> 2015-11-30 12:21:26 UTC https://padlet.com/CJBurrows/57zul76dx1r1/wish/83865748 Salim and Andy  https://padlet.com/CJBurrows/57zul76dx1r1/wish/83865937 A subsidy is a grant to producer that lower their cost of production.

]]> 2015-11-30 12:22:50 UTC https://padlet.com/CJBurrows/57zul76dx1r1/wish/83865937 Salim and Andy  https://padlet.com/CJBurrows/57zul76dx1r1/wish/83866321 Removal the subsidy will cause the supply to shift to the left which will cause the price to increase, and quantity to decrease

]]> 2015-11-30 12:25:40 UTC https://padlet.com/CJBurrows/57zul76dx1r1/wish/83866321 https://padlet.com/CJBurrows/57zul76dx1r1/wish/83866555 An indirect tax is one that is levied when goods and services are bought. Eg. VAT

]]> 2015-11-30 12:27:39 UTC https://padlet.com/CJBurrows/57zul76dx1r1/wish/83866555 https://padlet.com/CJBurrows/57zul76dx1r1/wish/83867476 2015-11-30 12:32:45 UTC https://padlet.com/CJBurrows/57zul76dx1r1/wish/83867476 https://padlet.com/CJBurrows/57zul76dx1r1/wish/83867999 An subsidy is the amount of money paid by a government to a producer so that the price to the customer will be lower than it otherwise would have been

]]> 2015-11-30 12:35:54 UTC https://padlet.com/CJBurrows/57zul76dx1r1/wish/83867999 GOOD - BEGIN WITH DEFINITIONS! (CJB) CJBurrows https://padlet.com/CJBurrows/57zul76dx1r1/wish/83882913 2015-11-30 13:37:02 UTC https://padlet.com/CJBurrows/57zul76dx1r1/wish/83882913 CJB - no need to reference CONSUMER SURPLUS in this question. CJBurrows https://padlet.com/CJBurrows/57zul76dx1r1/wish/83883369 2015-11-30 13:38:26 UTC https://padlet.com/CJBurrows/57zul76dx1r1/wish/83883369 CJBurrows https://padlet.com/CJBurrows/57zul76dx1r1/wish/83883590 2015-11-30 13:39:05 UTC https://padlet.com/CJBurrows/57zul76dx1r1/wish/83883590 CJB - It could however be relevant to comment on the degree of price or quantity change arising due to PED or Es. CJBurrows https://padlet.com/CJBurrows/57zul76dx1r1/wish/83883783 2015-11-30 13:39:37 UTC https://padlet.com/CJBurrows/57zul76dx1r1/wish/83883783