1. If the demand for food is very price-inelastic, will there be a bigger or smaller redistribution...

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1. If the demand for food is very price-inelastic, will there be a bigger or smaller redistribution from rich to poor with system of subsidies? (Imagine swinging the D curve in Figure 1 so that it becomes steeper.)

2. Is there any redistribution from rich to poor in Figure 3.13 in the textbook?

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Economics

ISBN: 978-1292187853

10th edition

Authors: John Sloman, Jon Guest, Dean Garratt

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Question Posted: Apr 03, 2019 07:32 AM

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1. If the demand for food is very price-inelastic, will there be a bigger or smaller redistribution...

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1 There will be a bigger price reduction There will thus be a greater redistribution to the poo...View the full answer

Economics

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