JNU SIS 2012 Q4

[RHIDIMA]

plz solve Q 4 of Jnu SIS

[ISI agent]

Let P be the demand price and P' be the supply price.

With Subsidy, the demand price reduces to P = P'-5/3
Qd = 10-2(P'-5/3)
Qs = 3P'-5

At equilibrium, Qd = Qs and solving equations gives P' = 11/3 and Q = 6.
Hence the subsidy reimbursed to the Farmers equals 6*5/3 = 10.

Perhaps this is how it should go.

[RHIDIMA]

Thnks a lot. Can u plz solve q16-23 of jnu sss 2011 plz...