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Use the Figure below to answer the following questions. a. What is the size of the subsidy? b. What is the price consumers pay before
Use the Figure below to answer the following questions.
a. What is the size of the subsidy?
b. What is the price consumers pay before and after the subsidy?
c. What is the price sellers receive before and after the subsidy?
d. What is the level of consumer surplus before and after the subsidy?
e. What is the level of producer surplus before and after the subsidy?
f. How much does the subsidy cost the government?
g. What is the deadweight loss of the subsidy?
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