Question
Suppose the demand and supply functions for a product are given as: Q_d=100-5p and Q_s=20+3p1 .Calculate the equilibrium price and quantity. 2.Calculate the price required
Suppose the demand and supply functions for a product are given as: Q_d=100-5p and Q_s=20+3p1 .Calculate the equilibrium price and quantity.
2.Calculate the price required for producers to sell 80 units.
3.Suppose the government grants a $2.67 per unit subsidy on the product. Calculate the new equilibrium price and quantity.
4.Using your answers from previous questions, calculate the difference in the consumer spending on the product.
5.Calculate the total amount spent by the government on the subsidy.
(PLEASE SHOW THE GRAPHICAL PLOTTINGS TOO.)
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Microeconomics
Authors: Christopher T.S. Ragan, Richard G Lipsey
14th canadian Edition
321866347, 978-0321866349
