PRICE (Dolars per a toy)24󈭪-2010161410Supply2Demand12 18 24 30 3442 45QUANTITY (Milions of toys per yearAfter the subsidy, the price producers receive is54+ +DemandSupplyDand the price paid by consumers is sil This subsidy program costs Canada's government 12. Understanding subsidiesSuppose that in an attempt to protect its domestic toy industry, Canada's government subsidizes the production or consumption of domesticallyproduced toys by giving each citizen a subsidy card. Each time citizens buy a domestically made toy, they swipe their cards and receive discounts of$8 off the price of a toy.The following graph represents the market for domestically made toys in Canada without any subsidyAdjust the graph to show the effect of the $8 subsidy.CE (Dolan pe a toy)242220101014SupplyDemandaSupplyD

When the government introduces a subsidy package that provides $8 subsidy for each unit of the…

Answered: PRICE (Dolars per a to 12 Supply after…

PRICE (Dolars per a to 12 Supply after the subsidy, the price producers receive is Demand 24 M QUANTITY (Milions of toys per year 2. 14 and the price pa

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

PRICE (Dolars per a toy)
24
&#822122-
20
10
16
14
10
Supply
2
Demand
12 18 24 30 3442 45
QUANTITY (Milions of toys per year
After the subsidy, the price producers receive is
54
+ +
Demand
Supply
D
and the price paid by consumers is sil This subsidy program costs Canada's government

12. Understanding subsidies
Suppose that in an attempt to protect its domestic toy industry, Canada's government subsidizes the production or consumption of domestically
produced toys by giving each citizen a subsidy card. Each time citizens buy a domestically made toy, they swipe their cards and receive discounts of
$8 off the price of a toy.
The following graph represents the market for domestically made toys in Canada without any subsidy
Adjust the graph to show the effect of the $8 subsidy.
CE (Dolan pe a toy)
24
22
20
10
10
14
Supply
Demand
a
Supply
D

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