1. 1. In 1991, public transportation received $9.79 billion dollars in operating subsidies from federal, state and local government. Use budget lines and indifference curves to identify the economic welfare and public transit consumption effect of the subsidy.
   2. The price elasticity of transit demand has been estimated in the range of -0.2 to -0.4. Suppose that the transit authority seeks to increase demand through a 10% reduction in fares. What impact will this have on transit demand, and what impact do you think it would have on the operating subsidies?(prive me with all curves to sove this question)