Reference no: EM132519561
Suppose that the State of Massachusetts
Massachusetts decides to subsidize the cost of purchasing a treadmill for cardiac? patients, as prescribed by their doctors. Prior to the? program, the equilibrium price of treadmills was? $800, and the equilibrium quantity purchased was? 50,000.
The state decides to subsidize ?$700
700 of the cost of the? treadmill, and with the? subsidy, the quantity that consumers wish to purchase is? 70,000. Manufacturers are willing to supply this quantity at a price of? $1,000.
The cost of this program to the State of Massachusetts is what?
After the? subsidy, consumers will pay how much of the cost of the? treadmill, and the state will pay how much?
Can you me step by step to get these answers?
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