Consider each scenario independently. In each of the following cases tell me, using written and graphical analysis (a - g). For Question 1. – 7. please see details below: Include the correct increase / decrease in the demand or supply include correct labels include what will happen to the equilibrium price include what will happen to the equilibrium quantity Include a brief explanation 6. Government grants a $1 subsidy on each bottle of milk produced. Price of Milk (Y-axis) ^ | S2 | | / | / | / | / | / | / | / | / |/ +---------------------------------- Quantity of Milk (X-axis) S1 7. Government collects a $2 sales tax on each bottle of rum.
Consider each scenario independently. In each of the following cases tell me, using
written and graphical analysis (a - g). For Question 1. – 7. please see
details below:
Include the correct increase / decrease in the
include correct labels
include what will happen to the equilibrium
include what will happen to the equilibrium quantity
Include a brief explanation
6. Government grants a $1 subsidy on each bottle of milk produced.
Price of Milk (Y-axis)
^
|
S2 |
| /
| /
| /
| /
| /
| /
| /
| /
|/
+---------------------------------- Quantity of Milk (X-axis)
S1
7. Government collects a $2 sales tax on each bottle of rum.
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