Explain the effect of the subsidy on the market forces and the equilibrium point

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Price per litre ($)

Quantity Demanded in 000

Quantity Supplied in 000

 
 

litres (per Month)

litres (per month)

 

11

0

27

 

10

2

25

 

9

4

23

 

8

6

20

 

7

8

17

 

6

10

15

 

5

12

12

 

4

14

10

 

3

16

7

 

2

18

5

 

1

20

3

 

Explain the effect of the subsidy on the market forces and the equilibrium point

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