Price Quantit Quantity Demande y Supplied 50 d $500 450 50 45 400 10 40 350 15 35 300 20 30 250 25 25 200 30 20 150 35 15 100 40 10 50 45 5 50 3. Using the same data from question one, suppose that the Australian government chooses to issue a $50 per TV subsidy to domestic producers. Show the impact of the subsidy using a supply and demand diagram. Identify the price domestic consumers pay after the subsidy, the quantity of TVs supplied by domestic producers, and the quantity of imports. b. Calculate consumer, producer surplus, the amount the government spends supporting the subsidy, and the dead weight loss.
Price Quantit Quantity Demande y Supplied 50 d $500 450 50 45 400 10 40 350 15 35 300 20 30 250 25 25 200 30 20 150 35 15 100 40 10 50 45 5 50 3. Using the same data from question one, suppose that the Australian government chooses to issue a $50 per TV subsidy to domestic producers. Show the impact of the subsidy using a supply and demand diagram. Identify the price domestic consumers pay after the subsidy, the quantity of TVs supplied by domestic producers, and the quantity of imports. b. Calculate consumer, producer surplus, the amount the government spends supporting the subsidy, and the dead weight loss.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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