The Indian government provides farmers with a subsidy of $5 per kilo so that they supply food in a market where X shows the equilibrium position. The resulting effect is shown in the diagram below. What will the new equilibrium price and quantity supplied be after the subsidy?
- Aequilibrium price $10 per kilo; quantity supplied $20 ('000 kilos)
- Bequilibrium price $13 per kilo; quantity supplied $25 ('000 kilos)
- Cequilibrium price $15 per kilo; quantity supplied $20 ('000 kilos)
- Dequilibrium price $20 per kilo; quantity supplied $10 ('000 kilos)