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Results tagged with subsidies
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user 10376
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How to find the market equilibrium by surplus maximisation when there is a consumer subside?
never work on weekends :-)
What you really do here is to find the total surplus in terms of $Q*$ and then maximise it setting the derivative to $Q*$ equal to zero.
So, you just maximise
$$TotalSurpl …
- 307
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How to find the market equilibrium by surplus maximisation when there is a consumer subside?
Let's assume a market with linear demand and supply functions, let's say $Q_d = 20 - 4p$ and $Q_s = -4 +8p$ respectively.
We can easily find the market equilibrium by either setting $Q_d = Q_s$ (or $ …
- 307