ECO 200 Which subsidy provides a bigger benefit to the recipient

Using indifference curve diagrams, assess the welfare effects of a price subsidy compared with a lump-sum subsidy for childcare:(a) Which subsidy provides a bigger benefit to the recipient?(b)Which subsidy increases the demand for child care services more?(c) Which subsidy imposes lower costs on other consumers of child care services?(d)If a parent did not receive a subsidy, would they still have a preference for the type of subsidy the government pays?(e) Canada chose the lump-sum subsidy, but limited the amount that a family could receive. How do such limits effect the choice of subsidy?


Looking for a Similar Assignment? Let us take care of your classwork while you enjoy your free time! All papers are written from scratch and are 100% Original. Try us today!