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A perfectly competitive market has the following demand and supply: QD =900 - 10p QS = 40p Suppose the government introduces a $5 subsidy on

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A perfectly competitive market has the following demand and supply: QD =900 - 10p QS = 40p Suppose the government introduces a $5 subsidy on each unit sold. The total subsidy cost for the government will be Now let's consider how this subsidy affects consumers and producers. Out of the $5 subsidy, consumers receive $ and producers receive $

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