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What are the equilibrium price paid by consumers and the equilibrium quantity of yak butter now? (h) Suppose the government had paid the subsidy to consumers rather than producers. What would be the equilibrium net price paid by consumers? 16.2 (0) Here are the supply and demand equations for throstles, where p is the price in dollars: D(p) = 40 P S(p) = 10 + p. On the axes below, draw the demand and supply curves for throstles, using blue ink. (b) Suppose that the government decides to restrict the industry to selling only 20 throstles. At what price would 20 throstles be demanded? How many throstles would suppliers supply at that price? What price would the suppliers supply only 20 units?

Macroeconomics, Economics

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