After the $4 subsidy is imposed,how many individuals work in the steel industry?
A) 19
B) 20
C) 23
D) 25
E) 27

Question

Quizplus · Accepted Answer

The subsidy of $4 will increase the wage rate for steel workers from $6 to $10. At this wage rate, 23 individuals are willing to work in the steel industry. This can be seen by finding the point where the supply curve (which represents the number of individuals willing to work at each wage rate) intersects with the new wage rate of $10.

After the $4 Subsidy Is Imposed,how Many Individuals Work in the Steel