Subsidies

Instructor: Alex Tabarrok, George Mason University

What is a subsidy? A subsidy is really just a negative or reverse tax. Instead of collecting money in the form of a tax, the government gives money to consumer or

What is a subsidy? A subsidy is really just a negative or reverse tax. Instead of collecting money in the form of a tax, the government gives money to consumer or producers. In this video, we look at the subsidy wedge and who benefits the most from different subsidies.

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haha, I guess the rise of price for a bag from 100 to 150 will probably stop some people from buying it, but people value things differently and their trade offs are different, Some people will probably have McD.for 1 month to save money for a luxury bag, while others prefer to have healty meal everyday rather than a luxury bag.. Also for very rich people, rise in price won't bother them at all.

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