The price and quantity with perfectly competitive markets

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Reference no: EM131101365

Assume that the Demand curve is given as Q=250-5P and the supply curve as P=10+Q.

a. What would be the price and quantity with perfectly competitive markets?

b. What will happen to price and quantity if the government provides a specific subsidy of $1 per unit on the producers? What would be DWL?

Reference no: EM131101365

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