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The domestic demand for calculators is given by P = 50−0.2Q. The supply of domestic producers...

The domestic demand for calculators is given by P = 50−0.2Q.

The supply of domestic producers is given by P = 22+0.1Q, and international supply by P = 30.

Illustrate this market geometrically.

If the government gives a production subsidy of $2 per unit to domestic suppliers in order to increase their competitiveness, illustrate the impact of this on the domestic supply curve.

Compute the cost to the government of this scheme

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Please, give me a rating. It will be appreciable. Thank you.

Rahul Sunny answered 2 years ago
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