Business, 24.02.2021 20:50 zariah10191101
Suppose one thousand (1000) units of product A are produced by XYZ Limited and but
the quantity demanded for the product is two thousand (2000) units. All other things
remaining constant. a GHc18 change in price of product A results in a change quantity
demanded and supplied of 6 and 9 respectively. XYZ Limited has a work force of 500
people who pay income tax of GH¢200 each to the government.
a. Calculate the equilibrium price in (GHC) and equilibrium quantity.
b. Suppose the government introduces a subsidy of GHc10 on each unit of product A
produced, calculate the new equilibrium price and quantity.
c. Graphically show how much of the subsidy will be receive by the producer and the
consumer respectively.​
Answers: 3
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Suppose one thousand (1000) units of product A are produced by XYZ Limited and but
the quantity dem...
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