Points: 0.33 of 1
The graph shows the market for tomatoes.
If the government subsidizes growers at $4 a pound, who gains and who loses from the subsidy?
What is the deadweight loss?
Could the subsidy be regarded as being fair?
gain and lose from the U.S. subsidy.
A. Tomato producers in other countries, U.S. taxpayers
B. U.S. farmers who receive the subsidy;
C. U.S. taxpayers and tomato producers in other countries
The deadweight loss created is $ billion.
Price (dollars per pound)
Points: 0.33 of 1
The graph shows the market for tomatoes. If the government subsidizes growers at $4 a pound, who gains and who loses from the subsidy? What is the deadweight loss? Could the subsidy be regarded as being fair?
Price (dollars per pound)
Quantity (billions of pounds per year)
Gain and lose from the U.S. subsidy:
A. Tomato producers in other countries, U.S. taxpayers
B. U.S. farmers who receive the subsidy
C. U.S. taxpayers and tomato producers in other countries
The deadweight loss created is $ billion.