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

## Related Questions

- Economics/Math - Suppose there are four firms in a competitive market and that ...
- Microeconomics - This is a 5 part question; (a-e)The question reads: Suppose ...
- supply and demand - I'm looking for help on the third part of this question. I'...
- economics - Suppose the demand and supply for milk are described by the ...
- Microeconomics - Suppose that the market labor supply and labor demand equations...
- Microeconomics [Urgent!] - I have an exam tomorrow and I really need to know how...
- Economics - Much of the demand for U.S. agricultural output has come from other ...
- Economic - The market for Good X can be depicted with the following demand and ...
- CALCULUS ECONOMICS - Consider an economy in which a monopolistic firm serves two...
- economics - suppose a competitive market consists of identical firms with a ...

More Related Questions