The market for electric scooters is perfectly competitive. Demand is given by D(p) = 24 — p and supply is given by S(p) = 2p, where p denotes the price. Suppose a subsidy s = £1.5 per unit of good is introduced on the market. What is the price (ps) received by suppliers of electric scooters in the new market equilibrium? A. Ps = 9.5
B. Ps = 7 C. Ps= 8.5 D. None of the other answers are correct E. Ps = 8