Fill the Graph, No mark without Graph!

2. The market for gas is perfectly competitive with identical firms. Market demand is downward sloping. Each firm has the typical cost curve shapes. The market is currently in long-run and short-run equilibrium. To help themselves in the upcoming elections, the government imposes a per-unit subsidy of $1 on gas. The subsidy is paid to consumers. 2a). What is the short-run impact of the subsidy on (1) Market price, (2) Market quantity, (3) Firm Quantity and (4) Number of firms in the gas market. Complete the diagrams below to show the Short-run impact on the market and the firms. (Draw the graph and label it) MARKET FIRM Q Q 2b). What is the long-run impact of the subsidy on (1) Market price, (2) Market quantity, (3) Firm Quantity and (4) Number of firms in the gas market. Complete the diagrams below to show the Short-run impact on the market and the firms. (Draw the graph and label it) MARKET FIRM