The government expenditure

Reference no: EM13190596

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?

Reference no: EM13190596

Questions Cloud

What altitud will they onserve the sun at noon : On the same day my friends are sigtseeing at Iguazu Falls in Brazil (25.68 S) at what altitud will they onserve the sun at noon

Explain the legal and ethical principles : Explain the legal and ethical principles you need to follow for all visual image use. What do you need to adhere to when using images in the workplace? What is the impact of computer technologies on legal image use?

The cost and consequences of providing the subidies : what are the cost and consequences of providing the subidies?

Enough welfare or subsidies to the poor : The south african government is not providing enough welfare to the poor

The government expenditure : What is the government expenditure on this subsidy?What is the deadweight loss as a result of this subsidy?

Discuss how an airline executive might use tourism economics : Discuss how an airline executive might use tourism economics relating to passenger load-factors, ticket prices, discounts, frequent-flyer programs, joint fares, and flight frequencies.

List the networking and commination devices required : List the networking and commination devices required, including the IP addresses, product numbers, the cost of each and the approximate total cost.

Humor in advertising is risky-devastatingly effective : Humor in advertising is risky. It can also be devastatingly effective. When done right, humor works -really, really well. Advertising is about getting attention.

State the calcium and magnesium ions in an average load : determine what percentage (by mass) of the detergent must be sodium carbonate in order to completely precipitate all of the calcium and magnesium ions in an average load of laundry water.

User Account

All Pages