demanded supplied
$5.00 12,000 24,000
4.25 15,000 21,000
3.50 18,000 18,000
2.75 21,000 15,000
2.00 25,000 10,000
12. Suppose now instead that, instead of a subsidy, the government enters the market to
support a price of $4.25 per dozen. How many dozens of doughnuts will the
government need to buy?
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