Assume a subsidy to buyers has been enacted in the market in the graph shown.With the subsidy,the producers sell _____ units and receive _____ for each of them.

Question

Quizplus · Accepted Answer

With the subsidy, the demand curve shifts up and to the right, increasing both the equilibrium quantity (from 100 to 150) and the equilibrium price received by producers (from $30 to $40). Therefore, the correct answer is option C, with 150 units sold at $40 each.

Assume a Subsidy to Buyers Has Been Enacted in the Market