-The Table Above Gives the Demand and Supply Schedules for Bread

question 195

Essay

-The table above gives the demand and supply schedules for bread in Bakerville. Draw the demand and supply curves. Suppose a subsidy on bread of $1 per loaf is given to bread producers.
a) How will the subsidy affect the price paid by buyers for a loaf of bread and the quantity of bread sold? Show your work on your graph.
b) How will the subsidy affect the amount sellers receive for a loaf of bread?
c) After the subsidy is granted, what is the marginal social cost of the last loaf of bread produced? What is its marginal social benefit? If there are no external costs or external benefits, is the bread market efficient once the subsidy is granted?

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Definitions:

Organizational Psychologist

A specialist in psychology who applies psychological theories and principles to organizations, focusing on improving workplace productivity, culture, and the well-being of employees.

Worker Satisfaction

The degree to which employees are content with their jobs, which can affect their performance and retention.

Motivation

The psychological process that initiates, guides, and maintains goal-oriented behaviors, including needs, desires, and ambitions.

Occupational Health Psychology

A field of psychology that focuses on the study, prevention, and remediation of job stressors and health problems related to work environments and organizations.