Question: 1. Let's think about a per unit production subsidy. Start with an initial equilibrium price of $5 and quantity of 100 million. Now provide producers

1. Let's think about a per unit production subsidy. Start with an initial equilibrium price of $5 and quantity of 100 million. Now provide producers with a $1 per unit subsidy. Shade in (the cost of) the subsidy, make up numbers for the new quantity exchanged, the price consumers face (Pc) and the price producers get (Pp).

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