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The demand for the Tesla electric automobile is P = 200,000 2Q, where P is in $/car and Q is the number of cars sold
The demand for the Tesla electric automobile is P = 200,000 2Q, where P is in $/car and Q is the number of cars sold per year. Currently, the U.S. government offers incentives to buyers of electric vehicles worth $5000. If the current selling price of the Tesla is $75,000, effectively $70,000 once the buyer claims the rebate, what is consumer surplus when the subsidy is available? What will be the change in consumer surplus after the incentive has expired?
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