Question

I already get first question, pleace use it for following questions

Question 1 1/1 pts Suppose that, in order to offset the rising cost of college, the government places a $20 subsidy on college textbooks. Demand in this market is given by Qd = 2000 - 6Pd, and supply is given by Qs = 400 + 14Ps The equilibrium quantity in this market after the subsidy will be 1604 textbooks, and the equilibrium price paid by textbook buyers will be $ 66 Answer 1: 1604 Answer 2: 66

Answer 1

Due to presence of HOMEWORKLIB POLICY, I am answering first of unanswered questions.

2.

Ans:

With price ceiling of 70:

Using demand curve we get quantity bought by consumers:

Q = 2000 - 6P = 2000 - 6(70) = 1580.

Using supply curve we get quantity producers want to sell:

Q = 400 + 14P = 400 + 14(70) = 1380.

Actual sale/consumption = min{demand, supply} = min{1580, 1380} = 1380.

Since only 1380 (<demand) are getting produced, only 1380 will be available to consume.

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