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Concept Question 5

Economics

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Concept Question 5.1 The govemment wants to help the mohair sweater industry by giving producers a specific subsidy of $1.00 per mohair sweater. Suppose that the market demand isgiven by: Qd = 1000 - 18p 
and the market supply is: Qs= - 240 + 40p. How much will the subsidy cost taxpayers? The cost to taxpayers is $ (Round your answer to the nearest penny)