Use the following to answer questions: Figure: Supply and Demand with Subsidy
-(Figure: Supply and Demand with Subsidy) Refer to the figure. The quantity traded with a $2 subsidy is:

Question

Use the following to answer questions: Figure: Supply and Demand with Subsidy 
-(Figure: Supply and Demand with Subsidy) Refer to the figure. The quantity traded with a $2 subsidy is:

Quizplus · Accepted Answer

With the subsidy, the equilibrium price decreases from $4 to $2, and the equilibrium quantity increases from 200 to 400. Therefore, the quantity traded with a $2 subsidy is 400.

Use the Following to Answer Questions: Figure: Supply and Demand