**Please report your answers in the Answer Box. Thanks.
6. Consider the demand and supply curves in Q.5.
Assume market demand increases and that the new demand curve is now Qd = 50 – P. Further assume the government provides to each firm, a subsidy of $40 per unit of output produced. Thus the supply curve now becomes Qs = 10 + 2(P+40).
Develop a graph for the new demand and supply curves. Then use the graph to find the new equilibrium price and quantity.
**Please report your answers in the Answer Box. Thanks
Recently Asked Questions
- The cost of petrol rises by 2 cents a liter. last week a man bought 20 liters at the old price. This week he bought 10 liters at the new price. Altogether,
- For what chemical reason should you separate remaining zinc from iodine solution before adding bleach to the solution? (Background: zinc dust was placed in
- Hi, I would like to receive help in this problem, I find it very tricky and I have a quiz today so I would appreciate if I receive help on this so I can study