The inverse demand for wind powered turbines (that produce electricity from the wind) is P = 24 - 0.2Q. The supply of wind powered turbines is P = 5 + 0.8Q, where P is in thousands of dollars and Q is in thousands of wind turbines. The market for wind powered turbines is perfectly competitive. The equilibrium quantity in market is thousand wind turbines. (Enter your response as a real number rounded to one decimal place.) The equilibrium price in the market is $ thousand. (Enter your response as a real number rounded to one decimal place.) The government wants to encourage alternative sources of energy and decides to offer wind turbine producers a subsidy of $3 thousand per turbine produced and sold. As a result, the new equilibrium quantity in the market will be thousand turbines. (Enter your response as a real number rounded to one decimal place.) The amount sellers will receive for each turbine sold is $ thousand. (Enter your response as a real number rounded to one decimal place.) The amount buyers will pay for each turbine purchased is $ thousand. (Enter your response as a real number rounded to one decimal place.) The deadweight loss caused by the subsidy is $ million. (Enter your response as a real number rounded to one decimal place.)
The inverse demand for wind powered turbines (that produce electricity from the wind) is P = 24 - 0.2Q. The supply of wind powered turbines is P = 5 + 0.8Q, where P is in thousands of dollars and Q is in thousands of wind turbines. The market for wind powered turbines is perfectly competitive. The equilibrium quantity in market is thousand wind turbines. (Enter your response as a real number rounded to one decimal place.) The equilibrium price in the market is $ thousand. (Enter your response as a real number rounded to one decimal place.) The government wants to encourage alternative sources of energy and decides to offer wind turbine producers a subsidy of $3 thousand per turbine produced and sold. As a result, the new equilibrium quantity in the market will be thousand turbines. (Enter your response as a real number rounded to one decimal place.) The amount sellers will receive for each turbine sold is $ thousand. (Enter your response as a real number rounded to one decimal place.) The amount buyers will pay for each turbine purchased is $ thousand. (Enter your response as a real number rounded to one decimal place.) The deadweight loss caused by the subsidy is $ million. (Enter your response as a real number rounded to one decimal place.)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:The inverse demand for wind powered turbines (that produce electricity from the wind) is P = 24 - 0.2Q. The supply of wind powered turbines is P = 5+ 0.8Q, where P is in thousands of dollars and Q is in thousands of wind turbines.
The market for wind powered turbines is perfectly competitive. The equilibrium quantity in the market is
thousand wind turbines. (Enter your response as a real number rounded to one decimal place.)
The equilibrium price in the market is $ thousand. (Enter your response as a real number rounded to one decimal place.)
The government wants to encourage alternative sources of energy and decides to offer wind turbine producers a subsidy of $3 thousand per turbine produced and sold. As a result, the new equilibrium quantity in the market will be
thousand turbines. (Enter your response as a real number rounded to one decimal place.)
The amount sellers will receive for each turbine sold is $
thousand. (Enter your response as a real number rounded to one decimal place.)
The amount buyers will pay for each turbine purchased is $ thousand. (Enter your response as a real number rounded to one decimal place.)
The deadweight loss caused by the subsidy is $ million. (Enter your response as a real number rounded to one decimal place.)
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