Business, 28.11.2019 03:31 gadgetady5699

Chad paid $30 to buy a potato cannon, a cylinder that shoots potatoes hundreds of feet. he was willing to pay $45. when andrew’s friend nick learns that andrew bought a potato cannon, he asks andrew if he will sell it for $60, and andrew agrees. nick is thrilled, since he would have paid andrew up to $80 for the cannon. andrew is also delighted. determine the consumer surplus from the original purchase and the additional surplus generated by the resale of the cannon. how would a $2,000 subsidy on the purchase of a new hybrid vehicle impact the consumer surplus and producer surplus in the hybrid market? use a supply and demand diagram to illustrate your answer. does the subsidy create deadweight loss?

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