The demand cure for jelly bean is given by the equation P=38-Q, where P is the price of jelly bean and Q is the quantity of jelly beans sold. The supply curve is given by the equation P=8+Q/2. Now the government offers a subsidy of $6 to suppliers for every unit of jelly beans that they sell. The effect of this subsidy on the equilibrium price paid by consumers for jelly beans is to: a) increase this price by $6 b) reduce this price by $6 c) reduce this price by $4 d) reduce this price by $3 e) increase this price by $3
1