63 192
Assignments Done
99,3%
Successfully Done
In July 2018

Answer to Question #42703 in Microeconomics for JoJo

Question #42703
Suppose the market for school education can be described by the following equations.

P =1 00 000 - 2Q and P = -20 000 + Q

Where P is price in dollars and Q is number of students in thousands. Now suppose the government pays a subsidy o $10 000 per student.

(a) Calculate the equilibrium price and the number of students in a free market.
(b) With the subsidy what price the student will pay? What price the schools will receive per student? What will be the number of students in schools?
(c) What will be the total cost to the government?
(d) Show your results in a diagram.
Expert's answer

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be first!

Leave a comment

Ask Your question

Submit
Privacy policy Terms and Conditions