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Consider a Perfectly Competitive Market with Inverse Market Supply P=5+3QsP = 5 + 3 Q ^ { s }

Question 57

Multiple Choice

Consider a perfectly competitive market with inverse market supply P=5+3QsP = 5 + 3 Q ^ { s } and inverse market demand P=502QdP = 50 - 2 Q ^ { d } . Suppose the government subsidizes this market with a subsidy of $5\$ 5 per unit. What is the impact on the government's budget resulting from the subsidy?


A) 45- 45
B) 50- 50
C) 270- 270
D) 300- 300

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