Demand Elasticity & Subsidy Benefit

Quantity (Q) Price (P) (P1) 50 50 (Q1) D1 S1
Unitary (1.0)
Total Government Outlay $0 $0 / unit
Consumer Benefit $0 0% share
Producer Benefit $0 0% share

Calculation Steps

Total Subsidy Cost = Subsidy × Qs $0 × 0 = $0
Consumer Benefit = (P1 - Pc) × Qs (50 - 0) × 0 = $0
Producer Benefit = (Pp - P1) × Qs (0 - 50) × 0 = $0