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 deadweight loss resulting from the subsidy?
A) 0, subsidies do not have a deadweight loss
B) 2.5
C) 5
D) 7.5

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 deadweight loss resulting from the subsidy?
A) 0, subsidies do not have a deadweight loss
B) 2.5
C) 5
D) 7.5

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 $P = 5 + 3 Q ^ { s }$