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 equilibrium quantity traded after imposition of the subsidy?Please round and write the answer in billions and round to two decimals, for example 3.54 or 5.65.Use a minus sign to indicate if the number is negative.

Answer: Therefore the equillibrium quantiy=39.77

Explanation:

equilibrium Q and P before subsidies

-1.67+0.33P=25-0.5P

-1.17P=24.67

p=-21.09

Q=35.54

after subsidies of $5

the price becomes -24.67-5=-29.54

therefore the equillibrium quantity=25--0.5*29.54=39.77

37.What is the price consumers pay for the product?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:

38.What is the price producers receive for the product?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: