Question: A per - unit subsidy drives a wedge between the price consumers pay and the price producers receive with a height equal to the total

A per

-

unit subsidy drives a wedge between the price consumers pay and the price producers receive with a height equal to the total cost of the subsidy to the government

.

the amount by which the price received by producers increases as a result of the subsidy. the amount of the subsidy per unit

.

the pre

-

subsidy price of the good the deadweight loss caused by the tax.

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