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.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Question
Quantity
Demande
Price
Quantit
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
50
3. Using the same data from question one,
suppose that the Australian government
chooses to isue 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.
Transcribed Image Text:Quantity Demande Price Quantit 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 50 3. Using the same data from question one, suppose that the Australian government chooses to isue 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.
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