Per Unit Subsidy

demand intercept

20

elasticity of demand

1

supply intercept

10

elasticity of supply

1

per unit subsidy

10

reset

CS

PS

subsidy

DWL

This Demonstration illustrates the per unit subsidy model; you can vary demand, supply elasticity slopes, and subsidy size. You can choose to display consumer, producer, subsidy total, and deadweight loss. The Demonstration also calculates total subsidy, deadweight loss, the percent of the subsidy that goes to consumers, the amount that goes to suppliers, and the amount that demanders pay.