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1a. Consider a market in which the demand is given by P = 70 - 2Q. The supply is given by P = 2Q. Now
1a. Consider a market in which the demand is given by P = 70 - 2Q. The supply is given by P = 2Q. Now suppose that the government provides a subsidy of 42 dollars per unit. The increase in the equilibrium quantity is [Answer] units.
(In decimal numbers, with two decimal places, please.)
b. Compared with the case without the subsidy, the welfare loss is $[Answer].
(In decimal numbers, with two decimal places, please.)
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