Consider a perfectly competitive market with inverse market supply $P = 5 + 3 Q ^ { s }$ and inverse market demand $P = 50 - 2 Q ^ { d }$. Suppose the government subsidizes this market with a subsidy of $\$ 5$ per unit. What is the impact on the government's budget resulting from the subsidy?
A) $- 45$
B) $- 50$
C) $- 270$
D) $- 300$

Question

Quizplus · Accepted Answer

The Answer of Consider a perfectly competitive market with inverse market supply $P = 5 + 3 Q ^ { s }$ and inverse market demand $P = 50 - 2 Q ^ { d }$. Suppose the government subsidizes this market with a subsidy of $\$ 5$ per unit. What is the impact on the government's budget resulting from the subsidy?
A) $- 45$
B) $- 50$
C) $- 270$
D) $- 300$

Consider a Perfectly Competitive Market with Inverse Market Supply P=5+3QsP = 5 + 3 Q ^ { s }P=5+3Qs

Consider a Perfectly Competitive Market with Inverse Market Supply $P = 5 + 3 Q ^ { s }$