Figure 3. The graph depicts the market for fertilizer. Price 500 450- 400 350- 300 250 200- g 150- 100 50 This market would benefit from a 50 100 150 200 250 300 350 400 450 500 Quantity a. subsidy on fertilizer equal to $100. b. tax on fertilizer equal to $100. Social Cost c. tax on fertilizer equal to $50. d. subsidy on fertilizer equal to $50. Supply (Private Costs) Demand

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Figure 3. The graph depicts the market for fertilizer.
Price
500
450
400
350
300
250-
200
150-
100
50
This market would benefit from a
50 100 150 200 250 300 350 400 450 500
Quantity
a. subsidy on fertilizer equal to $100.
b. tax on fertilizer equal to $100.
Social Cost
c. tax on fertilizer equal to $50.
d. subsidy on fertilizer equal to $50.
Supply
(Private Costs)
Demand
Transcribed Image Text:Figure 3. The graph depicts the market for fertilizer. Price 500 450 400 350 300 250- 200 150- 100 50 This market would benefit from a 50 100 150 200 250 300 350 400 450 500 Quantity a. subsidy on fertilizer equal to $100. b. tax on fertilizer equal to $100. Social Cost c. tax on fertilizer equal to $50. d. subsidy on fertilizer equal to $50. Supply (Private Costs) Demand
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