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MBA, Ph.D in Management
Harvard university
Feb-1997 - Aug-2003
Professor
Strayer University
Jan-2007 - Present
The following diagram illustrates the market for steak burgers. Suppose a subsidy of $4 per steak burger is offered to the sellers of steak burgers.
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Part 1: Use the copy tool to show the effect of this subsidy on either the supply or demand for steak burgers, whichever is appropriate. Label the new curve either Demand 2 or Supply 2. Â
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Part 2: Use an area tool to illustrate the area representing the total cost associated with the subsidy. Label this area Total Subsidy. Â
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Part 3: Use an area tool to illustrate the area representing the deadweight loss associated with the subsidy. Label this area D-W-Loss.
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