Effects of the Subsidy Essay Example | Topics and Well Written Essays - 1250 words

Effects of the Subsidy - Essay Example A market without a subsidy will reach equilibrium at the point where the demand curve intersects the pre-tax supply curve. Let’s assume that the price is P and the quantity is Q. The subsidy by the government will shift the supply curve downwards by the subsidy amount. The price paid by the buyers for the homes will fall from P to Ps, that is from $167,000 to $ 159,000 while the one to the suppliers will increase to Ps’ that is from $167,000 to $174,000. The quantity supplied will then increase from Q to Qs. In the graph below, the cost of the subsidy to the government is shown. The graph clearly shows a negative balance which is the cost of the subsidy which is always greater than the benefits enjoyed by the producers and the consumers. The deadweight loss of the subsidy is the amount by which the subsidy costs exceed the gains in the producer and consumer surpluses. The deadweight loss magnitude depends on the subsidy amount as well as the change in the production which results from the subsidy The benefits obtained from the subsidy are usually shared by the producers and the consumers in a proportion which depends on the relative slopes of supply and demand functions. However, the buyers gain more than the suppliers as the subsidy lowers prices to buyers and increases the price to the sellers. Assuming the two firms compete on prices à   la Bertrand with the production function and factor prices remaining the same: qM = L0.6K0.4 ;qK = L0.5 K0.5 ;the wage rate is $5 and the rental rate of capital is $10.

Halliday Functional Grammar Essay Example | Topics and Well Written Essays - 750 words

Halliday Functional Grammar - Essay Example An example would be "otter" and "odder" or "prints" and "prince". (Suber & Thorpe 2001). Linguistic Determinism is a theory of language that contends that all our thoughts are defined by language. Without words to define an idea or object, the mind can have no understanding of it. It was first proposed in 1950 and has remained a controversial subject (Biever 2004). A recent discovery of the numeric system of the Pariah tribe, whose language only contains words for the numbers one and two, is an example of linguistic determinism. A study revealed that they could not tell the difference between 4 objects and 5 objects since they did not have a word for them (Biever 2004). The study seems to support the theory that human languages determine the conclusions that we reach, the concepts we have of our lives, and all our emotional make up. A simplified language that develops when two languages combine is called a pidgin. First contact with English speaking settlers resulted in Native languages combining with the settler's language to form "pidgin English". It is formed as a basic, and usually temporary, means of communication between two distinct cultures. However, if the pidgin is used over the span of generations it develops into a more complex language with a wider vocabulary. It then becomes known as a Creole. The Creole spoken in Louisiana by the Cajuns is an example of the combination between the French and African languages. When the language is spoken of as being "Cajun", it is a dialect of Louisiana Creole. (Pidgins and Creoles 1997). Antonyms Antonyms, are words that have opposite meanings such as "high" and "low" or "good" and "bad". There are 4 types of antonyms. Gradable antonyms are ends of a graduated spectrum that express opposite qualities such as "hot" and "cold". Complementary antonyms are absolute opposites such as "moral" and "immoral". Relational antonyms describe an opposite relationship between two words such as "cop" and "robber" or "take" and "give". An auto-antonym is the same word that has two opposing meanings. "Fast" (move swiftly) and "fast" (to hold firmly) are auto-antonyms as well as "sanction" (to sponsor) and