the equilibrium under the subsidy can be found by locating the quantity where the vertical distance between the supply curve and the demand curve is equal to the amount of the subsidy. More specifically, the equilibrium with the subsidy is at the quantity where the corresponding price to the pr...
The more price responsive demand is relative to supply, the bigger the leakage effects. The green paradox effect depends heavily on the timing of the subsidy removal, but also on the price responsiveness. Two characteristics of the oil market may be of particular importance when we study the ...
How will a tax placed on the production of computers affect the supply of personal computers? How will a rise in wage rates affect the supply of personal computers? How will an increase in the number of sellers of computers affect the supply of personal computers? Ho...
2.2. Price, supply, and demand for biomass energy The price setting, supply–demand allocation, and corporate income level of biomass energy are important factors for its market construction and industrial development. Firstly, on the price-setting of biomass energy, Hodges et al. (2019) thought...
Evidently, the failure of the marine disasters index insurance pilots is mainly attributable to the lack of supply and demand for this insurance type. Government intervention is considered the most effective solution to revert failures in the index-based insurance market [37,38]. Cummins [39,40]...
Evidently, the failure of the marine disasters index insurance pilots is mainly attributable to the lack of supply and demand for this insurance type. Government intervention is considered the most effective solution to revert failures in the index-based insurance market [37,38]. Cummins [39,40]...
Based on a dynamic mathematical model and a numerical analysis of industrial organization, Jeanjean [30] found that the government’s subsidy policy has a more significant effect on the “demand side” than other measures. However, when subsidies are removed, consumers are less willing to buy. ...
Hence, the total consumer surplus is denoted as the area of the triangle around the price axis, above the price line and under the demand curve. Then, the consumer surplus in the CLSC is denoted as: 𝐶𝑠=(𝜙−𝑝)2/2Cs=(ϕ−p)2/2 (4) The environmental damage effect is...
and the generators’ data, we reconstruct the supply and demand curves and simulate the counterfactual market scenarios in order to illustrate and quantify the effects. We highlight the quantification of the theoretical effect of the transfer of rents, from non-fossil to fossil fuel producers, indu...
Hence, the total consumer surplus is denoted as the area of the triangle around the price axis, above the price line and under the demand curve. Then, the consumer surplus in the CLSC is denoted as: 𝐶𝑠=(𝜙−𝑝)2/2 (4) The environmental damage effect is reduced by the ...