1. Consider this supply function (in its inverse form and in levels): () = 2.5 + 0.33

a. Using Excel, plot this function where Q varies between 1, 2, 3, 4, and 5.

b. Among the candidate functions below, find the function that represent the effects from ad valoremsubsidy. Then, plot that function along with the function that you plotted in part a.

The candidate functions are:

1. () = 2.5 + 0.33 + 0.1
2. P(Q) = 2.5 + 0.33Q 0.1
3. () = 2.5 + 0.33 + 0.1
4. () = 2.5 + 0.33 0.1