Question content area

Part $1$

What is the effect on the$$ short$-$run equilibrium of a specific subsidy of s per unit that is given to all n firms in a$$ market? What is the incidence of the$$ subsidy?

Part $2$

The market price will

decrease

$,$

the$$ profit$-$maximizing output of each firm will

increase

$,$

and the

equilibrium

LOADING...

market quantity will

increase

$.$

Part $3$

What is the incidence of the subsidy for$$ consumers?

Part $4$

The incidence of the subsidy for consumers is

Part $5$

A$.$

the

originaloriginal

market price minus the subsidy divided by the subsidy.

B$.$

the new market quantity minus the original market quantity

C$.$

the portion of the subsidy consumers receive divided by the subsidy.

D$.$

the

originaloriginal

market price minus the

originaloriginal

average cost of production.

E$.$

the new market quantity minus the original market quantity divided by the

originaloriginal

market quantity.