**Case:**Recycling services for private businesses can be purchased from many firms in a competitive market. The Supply and Demand are:- $ P_s = 1000 + 20Q_s $- $ P_d = 4000 - 5Q_d $A **Government** is interested in promoting recycling by **subsidizing the Cost of Services.****Questions:** (Please Answer These Questions – Only)**BN5 (3)(b)**What would the **Price** and **Quantity** be if the City **adds a $500 Subsidy** per **Unit of Recycling?****BN5 (3)(c)**How much will the **Subsidy cost** the City?**BN5 (3)(d)**Who will benefit **more** from the **Subsidy—Consumers or Producers?****Bartleby Expert Answer:****BN5 (3)(a)**What is the **Equilibrium Price** and **Quantity** of Recycling Services?- Equilibrium Price = **3400**- Equilibrium Quantity = **120**

Supply function : Ps = 1000 + 20QsDemand function : Pd = 4000 - 5QdSubsidy = 500

Case: Recycling services for private businesses can be purchased from many firm competitive market. The Supply and Demand are: Ps= 1000+20Qs Pd=4000-5Qd A Government is interested in promoting recycling by subsidizing the Cost

Case: Recycling services for private businesses can be purchased from many firm competitive market. The Supply and Demand are: Ps= 1000+20Qs Pd=4000-5Qd A Government is interested in promoting recycling by subsidizing the Cost

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter13: Positive Externalities And Public Goods

Section: Chapter Questions

Problem 12RQ: What can government do to encourage the development of new technology?

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Question

100%

**Case:**

Recycling services for private businesses can be purchased from many firms in a competitive market. The Supply and Demand are:

- $ P_s = 1000 + 20Q_s $
- $ P_d = 4000 - 5Q_d $

A **Government** is interested in promoting recycling by **subsidizing the Cost of Services.**

**Questions:** (Please Answer These Questions – Only)

**BN5 (3)(b)**

What would the **Price** and **Quantity** be if the City **adds a $500 Subsidy** per **Unit of Recycling?**

**BN5 (3)(c)**

How much will the **Subsidy cost** the City?

**BN5 (3)(d)**

Who will benefit **more** from the **Subsidy—Consumers or Producers?**

**Bartleby Expert Answer:**

**BN5 (3)(a)**

What is the **Equilibrium Price** and **Quantity** of Recycling Services?

- Equilibrium Price = **3400**
- Equilibrium Quantity = **120**

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