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1,013, and a perfectly elastic 3. Consider a perfectly inelastic supply curve at q demand curve at p 101. A subsidy of $5 per


1,013, and a perfectly elastic 3. Consider a perfectly inelastic supply curve at q demand curve at p 101. A subsidy of $5 per unit is given to producers. Using a diagram, explain how the subsidy is shared between consumers and producers. What is the Deadweight Loss? (10%)

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