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Uploaded by on Aug 22, 2008

how price is affected when the government allocates subsidies to producers

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Education

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Standard YouTube License

  • likes, 4 dislikes

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Uploader Comments (pajholden)

  • Come Maldives and teach us.We pay $700 monthly+additional bonus by me :P

  • @intelgates tempting..... maybe I will retire there.

Top Comments

  • What happens with producer surplus after subsidies? And what is the deadweight loss? Thnks

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All Comments (103)

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  • Thanks for this video! Really helped on explaining the benefits/consequences of subsidies for a globalization class!

  • wow this was really useful... but i still hv problem memorising it all

  • Omg thanks so much. Got my AS mocks in 9 days

  • very incomplete... you are forgetting to factor in the new demand curve. which in theory should also shift proportionally out by the amount of the subsidy.

    in the real world when we look at goods and services that have a govt subsidies you will rarely find that the price has declined by the subsidy. in fact, most often you will find that producers will often raise prices close to the new demand curve caused by the unintended consequences of the govt subsidy.

  • what over methods can the government use to over come positive externalities?

  • If i do well in my Economics exam next week it will be solely down to you, seems to actually make sense when you teach it. Thankyou!

  • our econ teacher recommended this video..

    this makes so much more sense than what our teacher taught us xP

  • You are a genius why cant my teacher teach like this

  • @intelgates only $700 per month? heck my maid gets 1000 euros per month!

  • Very helpful, thanks :)

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