(Figure: Market for Electric Vehicles) Refer to the figure that shows the market for electric vehicles, where the original equilibrium price is $30,000. Suppose the government provides a $6,000 subsidy for first-time buyers of electric vehicles. Using this figure, answer the following questions:
(a) What price do buyers pay after the implementation of the subsidy?
(b) What price do sellers receive after the implementation of the subsidy?
(c) How does the subsidy change the number of vehicles that consumers buy in this market?

Question

(Figure: Market for Electric Vehicles) Refer to the figure that shows the market for electric vehicles, where the original equilibrium price is $30,000. Suppose the government provides a $6,000 subsidy for first-time buyers of electric vehicles. Using this figure, answer the following questions:
  (a) What price do buyers pay after the implementation of the subsidy?
(b) What price do sellers receive after the implementation of the subsidy?
(c) How does the subsidy change the number of vehicles that consumers buy in this market?

Quizplus · Accepted Answer

The Answer of (Figure: Market for Electric Vehicles) Refer to the figure that shows the market for electric vehicles, where the original equilibrium price is $30,000. Suppose the government provides a $6,000 subsidy for first-time buyers of electric vehicles. Using this figure, answer the following questions:
  (a) What price do buyers pay after the implementation of the subsidy?
(b) What price do sellers receive after the implementation of the subsidy?
(c) How does the subsidy change the number of vehicles that consumers buy in this market?

(Figure: Market for Electric Vehicles) Refer to the Figure That