Answered: The inverse supply function for pizza…

The inverse supply function for pizza is: PS = 1+ QS The demand function for pizza is: PD = 19 - 2QD What's the increase in Producer Surplus when a $6 subsidy to consumption is introduced? (NOTE: You

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter18: Pricing The Factors Of Production

Section: Chapter Questions

Problem 4TY

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Question

The inverse supply function for pizza is:
PS = 1+ QS
The demand function for pizza is:
PD = 19 - 2QD
What's the increase in Producer Surplus when a $6
subsidy to consumption is introduced? (NOTE: You
should assume that no tax was in place
beforehand)

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