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Question:4- . Suppose that instead of imposing a unit tax on producers t = 3, the government decides to pay consumers a subsidy s =

Question:4- . Suppose that instead of imposing a unit tax on producers t = 3, the government decides to pay consumers a subsidy s = 6 (6 cents per kilogram of apples purchased). What then is the price received by the producers at equilibrium?

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we are looking at the apple market. Suppose that this market is in a situation of perfect competition. The demand _ 10023? sipSU Q\"(p)_{n sip>50 curve in this market is given by where CID denotes the number of kilos of apples requested and p the price of one kilo of apples {under}. The gold curve in this market is given by oqm=Pno or 10 denotes the number of kilos of apples offered 1-lf the government imposes a unit tax on producers t = 3, then what is the price received by producers at market equilibrium? 2. if the government Imposes a tax on producers at unit t = 3, then what is the price paid by consumers at market equilibrium? 3. if the government Imposes a unit tax on producers t= 3, then what is the loss of surplus at market equilibrium {relative to market equilibrium without government intervention}

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