3500 The table gives demand and supply data for a compettive

3,500 The table gives demand and supply data for a compettive markot i pnce and quantity will be O $9 and 3,000 It govornment provides a per unit sabsidy of $2 to suppliers of this product, equilorum $750 and 2.250 O$8 50 and 2,750 O 57 and 3,000

Solution

Answwer is $ 7 and 3000.

Explanation:

At price $7, quantity demanded is equal to 3000 units.

However, including the government subsidy, the producer will get total of $ 9 (i.e. 7+2) at price $7. Therefore, for producer it will be a price $9, the quantity supplied is 3000 units.

Hence, $7 will be equilibrium price and quantity will be 3000 units.