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Demand and supply curves

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Reference no: EM132022424

The market for an agricultural product is modelled by the following Demand and Supply Curves:

Demand: Qd = 800 - 30P

Supply: Qs = 20P - 100

Where Q is quantity measured in tons, and P is the Price $ per ton

The government decides to provide producers with a subsidy of $4 per ton.

The competitive model predicts that, as a result of the subsidy, the equilibrium market price will fall by?

Reference no: EM132022424

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