39.Consider a perfectly competitive market with market supply of Q_S = -1.67 + .33P and market demand of Q_D = 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.

Answer:Qs = -1.67 + 0.33P

Qd =25--0.5P

equate both equations'

-1.67 + 0.33P = 25 - -0.5P

-1.67 - 25 = -0.5P - 0.33P

-26.67 = -0.83P

divide both sided by the value of P which is -0.83

P = 32.13

In the equation above, replace the P with 32.13 to get

Qs = -1.67 + (0.33*32.13)

= 8.93

Qd = 25 - (0.5*32.13)

=8.93

The government issued a subsidy of $5 per unit

32.13 - 5

=27.13

Qd = -1.67 + (0.33*27.13)

=11.44

11.44 - 8.93

=2.51

=$2.51

40.Consider a perfectly competitive market with market supply of Q_S = -1.67 + .33P and market demand of Q_D = 25 - .5P.Suppose the government subsidizes this market with a subsidy of $5 per unit.What is the deadweight loss 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.

Answer:

41.Consider a perfectly competitive market with market supply of Q_S = -1.67 + .33P and market demand of Q_D = 25 - .5P.Suppose the government subsidizes this market with a subsidy of $5 per unit.What is the impact on the government's budget 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.

Answer: