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Does a subsidy lead to a
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- What is the price that consumers pay after the subsidy is implemented?The graph below represents the market for wheat. Graph the change in the market if the government decides to subsidize wheat. Provide your answer below: Price of Wheat Supply DemandThe table shows the demand and supply schedules for on-campus housing. If the college puts a rent ceiling on rooms of $750 a month, rent is $ and the number of rooms rented is. The on-campus housing market is Rent (dollars per month) 500 550 600 650 700 750 Quantity demande 2.500 2,250 2,000 1,750 1,500 1,250 (rooms) Quantity supplied 2,000 2,000 2,000 2,000 2,000 2,000
- why does a subsidy on a good lower the price consumers pay and raises the price producers recieve?What effect will each of the following have on the supply of auto tires? The granting of a 50-cent-per-unit subsidy for each auto tire produced.At Price of $150 per XBOX unit, we would see: a excess supply b excess demand c producer surplus d neither excess demand and excess supply.
- The table below shows the demand and supply schedule for gasoline in a hypothetical country called Microland Price per litre ($) Quantity Demanded in 000 Quantity Supplied in 000 litres (per Month) litres (per month) 11 0 27 10 2 25 9 4 23 8 6 20 7 8 17 6 10 15 5 12 12 4 14 10 3 16 7 2 18 5 1 3 3 Explain the effect of the subsidy on the market forces and the equilibrium pointWhat would happen to the equilibrium price and equilibrium quantity of a good after the government subsidized its production at the same time that demand increased? Explain.Based on this graph, Calculate producer surplus from 500 pairs of shoes.