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

Multiple Choice

Consider a perfectly competitive market with inverse market supply $P = 5 + 3 Q ^ { s }$ and inverse market demand $P = 50 - 2 Q ^ { d }$ . Suppose the government subsidizes this market with a subsidy of $5 per unit. What are the equilibrium price and quantity traded before the subsidy?

A) P = 30; Q = 10
B) P = 25; Q = 12.5
C) P = 32; Q = 9
D) P = 35; Q = 7.5