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Just the answers, without explanation Solve following problems. Provide all the calculations needed. 1. In a market supply and demand curves are given by: Q

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Just the answers, without explanation

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Solve following problems. Provide all the calculations needed. 1. In a market supply and demand curves are given by: Q = 1000 - 20P, Qs = 600 + 30P where Q 6000. denotes quantity and P denotes price. a) Find an equilibrium point QD = 10.00- 20 P = 6000 + 30P 5000 = 50P P= 100. Now, lets assume that the government introduces a subsidy equal to 10: a) Illustrate the change in a graph and find new equilibrium point b) Find benefit to a consumer on and benefit to a producer (that is: how much will their situation improve because of the subsidy?) c) How high is the cost of a subsidy

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