Question
39. Consider a perfectly competitive market with market supply of Q S = -1.67 + .33P and market demand of Q D = 25 -
39. Consider a perfectly competitive market with market supply of QS = -1.67 + .33P and market demand of QD = 25 - .5P.Suppose the government subsidizes this market with a subsidy of $5 per unit.What is the increase in consumer surplus resulting from the subsidy?Please round and write the answer to one cent, for example $2.43 or $0.56.Use a minus sign to indicate if the number is negative.
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Economics
Authors: R. Glenn Hubbard
6th edition
978-0134797731, 134797736, 978-0134106243
