Homework Answers
Sol :
Option (c) is correct [8]
because of the following points :
- Equilibrium is the situation where dmeand and supply are equal to each other. Equilibrium price is the price corresponding tot he equilibrium point.
- Subsidy provides by the government will reduce the price for the consumers and increase the prices received by the producers.
- Producers will supply more amd consumer will demand more than the equilibrium.
- Subsidy (15 - 8 = 7) provided by the government.
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