ARE120%20Figures%206-1%20to%206-6

ARE120%20Figures%206-1%20to%206-6 - Figure 6.1. Welfare...

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Figure 6.1. Welfare Effects of a Quota and a Subsidy S D Price F G E H I J K A B C P 1 P 0 P 2 0 Quantity Q 1 Q 0 Q 2
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Table 6.1. Welfare Effects of a Quota and a Subsidy Marketing Quota Production Subsidy Producer Surplus ( Δ PS) A - (G+K) A+B+C Consumer Surplus ( Δ CS) - (A+B) F+G+H+I Taxpayer Surplus ( Δ TS) 0 - (A+B+C+E+F+G+H+I) Net Social Surplus ( Δ NS = -DWL) - (B+G+K) - E Table 6.2. Effects of Policies that Increase Producer Price by 10 Percent (DWL/ Δ PS) Marketing Quota Production Subsidy ε = 1.0, η = 1.0 0.118 0.095 ε = 0.5, η = 1.0 0.188 0.037 ε = 1.0 η = 0.5 0.040 0.143
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Figure 6.2. Surplus Transformation Curve for a Production Quota PS 1 PS 0 CS 1 CS 0 0 CS PS 45 ° Line E L M DWL Δ PS Δ CS
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Figure 6.3. Surplus Transformation Curves for a Quota versus a Subsidy a
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ARE120%20Figures%206-1%20to%206-6 - Figure 6.1. Welfare...

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