The demand in the lemon market is described by the expression Qd = 60-2P, and the supply Qs = 4P-24.

The demand in the lemon market is described by the expression Qd = 60-2P, and the supply Qs = 4P-24. The government wants the consumer price to be fixed at $ 12 per lemon, and for this it introduces a subsidy to lemon sellers, which is the same for all sellers per unit of commodity. What is the rate of the required subsidy?

$ 2 per unit of our product. Then it turns out that 60-2p = 4p-24p = 14 – the equilibrium price. 14-12 = 2 dollars per item.