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To enable more citizens to buy more gasoline, the Government decides to give gasoline producers a subsidy of $10 per unit- Using the supply and

To enable more citizens to buy more gasoline, the

Government decides to give gasoline producers a

subsidy of $10 per unit- Using the supply and demand

equations from #2. What price will consumer's pay and

how much gasoline will they buy? How much will the

Government spend on the subsidy? What will be the

change in producer surplus?

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