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For this question, the demand is P = 85 - 3Q & supply is P = 35 + 2Q. To enable more citizens to buy

For this question, the demand is P = 85 - 3Q

& supply is P = 35 + 2Q.

To enable more citizens to buy more gasoline, the

Government decides to give gasoline producers a

subsidy of $10 per unit- Using the supply and demand

equations from #2. What price will consumer's pay and

how much gasoline will they buy? How much will the

Government spend on the subsidy? What will be the

change in producer surplus?

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