Suppose that the State of Connecticut decides to subsidize the cost of purchasing a treadmill for cardiac patients, as
Posted: Fri Jul 01, 2022 8:12 am
Suppose that the State of Connecticut decides tosubsidize the cost of purchasing a treadmill forcardiac patients, as prescribed by their doctors. Prior tothe program, the equilibrium price of treadmillswas $800, and the equilibrium quantity purchasedwas 50,000.
The state decides to subsidize $700 of the cost ofthe treadmill, and with the subsidy, the quantity thatconsumers wish to purchase is 70,000. Manufacturers arewilling to supply this quantity at a price of $1,000.
The cost of this program to the Stateof Connecticut is $enter your responsehere million.
Part 2
After the subsidy, consumers will pay enter yourresponse here % of the cost of the treadmill, and thestate will pay enter your response here % of thecost.
The state decides to subsidize $700 of the cost ofthe treadmill, and with the subsidy, the quantity thatconsumers wish to purchase is 70,000. Manufacturers arewilling to supply this quantity at a price of $1,000.
The cost of this program to the Stateof Connecticut is $enter your responsehere million.
Part 2
After the subsidy, consumers will pay enter yourresponse here % of the cost of the treadmill, and thestate will pay enter your response here % of thecost.