: Demand curve for milk is Q = 440-13P while supply curve is Q 11+, where Pis measured by VND thousand per milk box, and Q by hundred thousand milk boxes. The government decided to provide a consumption subsidy of VND 6,000 per milk box. Calculate: a. What is pre- and after-subsidy gross revenue? b. What is subsidy benefit enjoyed by consumers and producers?

: Demand curve for milk is Q = 440-13P while supply curve is Q 11+, where Pis measured by VND thousand per milk box, and Q by hundred thousand milk boxes. The government decided to provide a consumption subsidy of VND 6,000 per milk box. Calculate: a. What is pre- and after-subsidy gross revenue? b. What is subsidy benefit enjoyed by consumers and producers?

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter6: Supply, Demand And Government Policies

Section: Chapter Questions

Problem 3CQQ

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