Question 14
Suppose the government acts weirdly and removes the subsidy to impose a tax of $6 excise tax per unit to producers The price that buyers pay now will be PB = _______
Question 14: Suppose the government acts weirdly and removes the subs…
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Correct answer: 18
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Question 14 of 28 in the IIT Madras BS Managerial Economics (Managerial Economics) Quiz 2 paper sat on 16 Aug 2026, in the May 2026 term (Managerial Economics 16 Aug 26). It carries 1 mark.
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- Equilibrium quantity (in millions) in the market before the subsidy will be Q= _
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- Total cost (in millions \$) to the government will be _
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