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 impact on the government's budget resulting from the subsidy?
A) -45
B) -50
C) -270
D) -300

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 impact on the government's budget resulting from the subsidy?
A) -45 
B) -50 
C) -270 
D) -300

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 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