Question 8 1 pts
Use following information for questions 8-9. To reduce the use of fossil fuel, one government decides to subsidise the suppliers of electric vehicles with a subsidy of $2 for every car they sell. Prior to the subsidy, the supply curve for electric cars is given by: p = 12 + Q. The demand curve is given by the following: p = 50 - Q. After the subsidy is imposed, the new supply curve is: p = 14 + Q p = 48 - Q
p = 10+ Q None of the other answers is correct. p = 52- Q
Question 9 1 pts After the subsidy is imposed, how much is the total cost of the subsidy to the government? 42 None of the other answers is correct. 40 18 36
