The market shown in Figure 6P-12 is in equilibrium. Suppose there is a $1.50 per unit subsidy given to buyers.

a. Draw the after-subsidy demand curve.

b. Plot the after-subsidy price paid by consumers and the after-subsidy price paid by sellers.

c. Draw government expenditures for the subsidy.

d. Calculate government expenditures.

Figure 6P-12:

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Price ($) 9. 8. D1 10 20 30 40 50 60 70 80 90 100 110 120 Quantity (millions) 7, 6. 4) 3, 2.