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The demand function for a good is Q=20-4P while the supply functions is Q=-5 3P. World price is $2 and the domestic production subsidy is
The demand function for a good is Q=20-4P while the supply functions is Q=-5 3P. World price is $2 and the domestic production subsidy is $1. a. Graph the demand and supply function to scale and label axis and intercepts. b. Determine the quantity demanded before and after the subsidy . c. Determine the quantity supplied before and after the subsidy . d. Determine the quantity imported before and after the subsidy . e. Determine the consumer surplus before and after the subsidy . f. Determine the producer surplus before and after the subsidy . g. Determine government cost after the subsidy . h. Determine the dead weight loss. i. Identify on the graph in part (a) the dead weight loss
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