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The demand and supply of pickles are given: QD = 300 – 500P and QS =...

The demand and supply of pickles are given: QD = 300 – 500P and QS = 400P – 150. (20 points)

a) Suppose a subsidy of $0.25 per pickle is imposed. Calculate the price paid by buyers (PB) and price received by sellers (PS) after the subsidy and illustrate with a graph.

b) Label the cost of this subsidy to the government on your graph

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