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Suppose there are two groups in the economy who demand fidget spinners with the aggregate demand for rapid spinners being P = 402 Q R D and the

Suppose there are two groups in the economy who demand fidget spinners with the aggregate demand for rapid spinners being P = 40−2×QRD and the aggregate demand for slow spinners being P = 20 − 2 ×QSD.

If there are 10 rapid spinners and 20 slow spinners in the economy what is the individual demand function of a single member of each group?

Find the market demand function. Suppose the (inverse) supply function for fidget spinners is P = 4 + 2 × Q. What is the equilibrium price and quantity here? Do both groups buy fidget spinners?

Suppose the government feels that fidget spinners don excellent job of reducing stress and want more people to have fidget spinners. This can be accomplished if the government subsidies them (a subsidy can be viewed as a negative tax). Suppose the government gives a $10 per fidget spinner subsidy to the producers, what is the new market price and quantity? How much does the subsidy cost the government?

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