Wednesday
July 23, 2014

Homework Help: Economics

Posted by excel on Monday, June 23, 2014 at 3:12pm.

Suppose that a perfectly competitive market is described by the following supply and demand equations: QD = 300 P and QS = 2P. Suppose that government subsidizes this good: for each unit sold government pays $15 to the seller.

(a) What is the government expenditure on this subsidy?
(b) What is the deadweight loss as a result of this subsidy?

Thanks for your help.

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

Economics/Math - Suppose there are four firms in a competitive market and that ...
supply and demand - I'm looking for help on the third part of this question. I'...
economics - Suppose the supply and demand for milk is described by the following...
economics - in the simple economics of a competitive market price increase under...
Microeconomics - Suppose that the market labor supply and labor demand equations...
economics - 1. Suppose that the market of laptops is given by following supply ...
Microeconomics [Urgent!] - I have an exam tomorrow and I really need to know how...
economics - in the simple economics of a competitive market price increases ...
economy - consider a perfectly competitive market in which all firms have the ...
Microeconomics - This is a 5 part question; (a-e)The question reads: Suppose ...

Search
Members