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In the Dutch market, the inverse demand function and the supply function for the only manufacturer of electric bicycles (eBikes), is respectively P = 4
In the Dutch market, the inverse demand function and the supply function for the only
manufacturer of electric bicycles (eBikes), is respectively P = 4 - 2q and p = 3q. The
government wants to stimulate the sale of eBikes and wants to do this by giving eBike consumers a subsidy of the size of s. Determine the total government grant costs as a function of s.
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