Consider a Perfectly Competitive Market with Inverse Market Supply

question 20

Multiple Choice

Consider a perfectly competitive market with inverse market supply and inverse market demand Suppose the government subsidizes this market with a subsidy of $5 per unit.What is the equilibrium quantity traded after imposition of the subsidy?

• A) Q = 10
• B) Q = 12.5
• C) Q = 9
• D) Q = 7.5

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Definitions:

Cheyne-Stokes

A pattern of breathing characterized by a gradual increase in the depth of breathing followed by a decrease, resulting in temporary stoppages of breathing; often associated with serious illness.

Larynx

The voice box located in the neck, which houses the vocal cords and is involved in breathing, producing sound, and protecting the trachea against food aspiration.

Cartilages

A flexible, strong connective tissue found in various parts of the body such as joints, nose, and ears, providing support and cushioning.

Cyan

A greenish-blue color, one of the primary subtractive colors used in color printing and photography.