# 3. Consider a perfectly inelastic supply curve at q = 1,013, and a perfectly elastic demand... 3. Consider a perfectly inelastic supply curve at q = 1,013, and a perfectly elastic demand curve at p = 101. A subsidy of \$5 per unit is given to producers. Using a diagram, explain how the subsidy is shared between consumers and producers. What is the Deadweight Loss? (30%) ##### Add Answer of: 3. Consider a perfectly inelastic supply curve at q = 1,013, and a perfectly elastic demand...
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Question 1: In a perfectly competitive market, the demand curve is given as: Q=100-5P, the supply curve is given as Q=3P-12. Compute the total social surplus of this market. If the government impose a tax on the producers, and the tax rate is \$2 per unit produced. What is the deadweight loss? If the government impose a tax on the consumers, and the tax rate is \$2 per unit purchased, graphically show the change in the market equilibrium and the...

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