Consider a perfectly competitive market with inverse market supply and inverse market demand Suppose the government subsidizes this market with a subsidy of $5 per unit.What is the equilibrium quantity traded after imposition of the subsidy?
A) Q = 10
B) Q = 12.5
C) Q = 9
D) Q = 7.5

Question

Consider a perfectly competitive market with inverse market supply  and inverse market demand  Suppose the government subsidizes this market with a subsidy of $5 per unit.What is the equilibrium quantity traded after imposition of the subsidy?
A) Q = 10 
B) Q = 12.5 
C) Q = 9 
D) Q = 7.5

Quizplus · Accepted Answer

The Answer of Consider a perfectly competitive market with inverse market supply  and inverse market demand  Suppose the government subsidizes this market with a subsidy of $5 per unit.What is the equilibrium quantity traded after imposition of the subsidy?
A) Q = 10 
B) Q = 12.5 
C) Q = 9 
D) Q = 7.5

Consider a Perfectly Competitive Market with Inverse Market Supply