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Suppose initially the price of a certain good is fixed below the market equilibrium. Relaxing the price control will lead to
The diagram below shows that the unit price of a commodity falls from $10 to $8 when the government provides a per-unit subsidy of $5 to its suppliers.

What is the total amount of suppliers' benefit from the government subsidy?
The flats under the Home-Ownership Scheme are allocated by a draw. This implies that
Suppose the government imposes a per unit sales tax of $5 on good X. Under what condition will the price increase by $5?

In the above figure, the market price of good X is fixed by the government at P*. If the demand increases from D to D',
For Question No.8 and 9, consider the following supply and demand schedule of wine in a certain country:
| Price ($) | Quantity demanded (Units) | Quantity supplied (Units) |
|---|---|---|
| 30 | 90 | 60 |
| 32 | 80 | 65 |
| 34 | 70 | 70 |
| 36 | 60 | 75 |
| 38 | 50 | 80 |
| 40 | 40 | 85 |
Suppose initially the wine market is in equilibrium. If the government imposes a tax of $6 for each unit of wine sold, the new equilibrium price will be
For Question No.8 and 9, consider the following supply and demand schedule of wine in a certain country:
| Price ($) | Quantity demanded (Units) | Quantity supplied (Units) |
|---|---|---|
| 30 | 90 | 60 |
| 32 | 80 | 65 |
| 34 | 70 | 70 |
| 36 | 60 | 75 |
| 38 | 50 | 80 |
| 40 | 40 | 85 |
Government revenue from the above tax will be _______.
The following diagram shows the supply of and the demand for the tickets of a concert.

If the tickets are sold at P2 instead of P1,
The demand for good X is perfectly inelastic. If the government offers a subsidy of $4 for each unit of X produced, the equilibrium price of X will
If the government imposes an effective quota on good Y, the market price of Y will _______ and its quantity transacted will _______.