Consider a perfectly competitive market with inverse market supply P = 5 + 3QS and inverse market demand P = 50 - 2Qd. Suppose the government subsidizes this market with a subsidy of $5 per unit. What is the impact on the government's budget resulting from the subsidy? O-300 -270 -45 -50
Consider a perfectly competitive market with inverse market supply P = 5 + 3QS and inverse market demand P = 50 - 2Qd. Suppose the government subsidizes this market with a subsidy of $5 per unit. What is the impact on the government's budget resulting from the subsidy? O-300 -270 -45 -50
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
![Consider a perfectly competitive market with
inverse market supply P = 5 + 3Q⁹ and
inverse market demand P = 50 - 2Qd
Suppose the government subsidizes this market
with a subsidy of $5 per unit. What is the
impact on the government's budget resulting
from the subsidy?
O-300
O-270
-45
O-50](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F825fe983-788f-43ef-b936-c22c80b6bf99%2F87d4ccf4-86b5-4b47-a46a-df9781f76aa2%2Fmhfk2uq_processed.png&w=3840&q=75)
Transcribed Image Text:Consider a perfectly competitive market with
inverse market supply P = 5 + 3Q⁹ and
inverse market demand P = 50 - 2Qd
Suppose the government subsidizes this market
with a subsidy of $5 per unit. What is the
impact on the government's budget resulting
from the subsidy?
O-300
O-270
-45
O-50
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