Answer to Question #143373 in Economics for Elisabeth

Question #143373

Calculate the gains in producer from the subsidy if the demand and supply of Chinese coal are
Qd = 60 − 0.5P.
Qs = −2 + 2P.

Expert's answer

"60-0.5p=-2+2p"

"2.5p=62"

"p=24.8"

"Q=47.6"

To determine the profit from a subsidy, you need to know the amount of the subsidy.

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