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The Demand and Supply of Ethanol Are Given by QD

Question 65

Multiple Choice

The demand and supply of ethanol are given by QD = 8,000 - 2,000P and QS = 1,000P - 1,000, where P is price per gallon and Q measures gallons per minute. What does it cost the government to subsidize ethanol at $0.30 a gallon?


A) $660 per minute
B) $14,000 per minute
C) $150 per minute
D) $2,000 per minute

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