Suppose that the government wants to subsidize the consumption of some essential commodities with a. 1 answer below »

Suppose that the synod wants to buoy the decrement of some inherent property delay a light to prominence the type of stay of indigent citizens. The synod has two opinion measures of supply to elect from: (i) exterminate supply, i.e., reducing the exterminate tax on some separated consequence and (ii) providing lump-sum proceeds supply in the fashion of grants. Which of these measures involves a inferior consume to the synod for a abandoned extension in decrement of the indigent inhabitants? Illustrate your rejoinder graphically.