Subsidies
How subsidies affect supply and demand, who actually benefits based on elasticity (subsidy incidence), and how to analyze deadweight loss. 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. Microeconomics Course: https://mru.io/vuz Next video: https://mru.io/cod Help us caption & translate this video! http://amara.org/v/GCs5/ 00:00 Intro 00:34 What is a Subsidy? 01:31 The Subsidy "Wedge" 06:01 No Elasticity = No Entry 09:43 Example: California Cotton Farmers & Water Subsidies
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Wage Subsidies
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Tax Incidence Explained with Supply and Demand
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Elasticity of Demand
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The Effects of a Per Unit Subsidy
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