Please answer this question using diagram:

Answer this question using diagrams. Consider a variant of the one period general equilibrium model as seen in class. The only change to the model is the government, which now subsidizes consumption. It does this by paying consumers a subsidy of s for each unit of the good that is consumed. The government finances this subsidy by taxing firms using a lump sum tax. The government balances its budget. The subsidy rate is s > 0, and the lump sum tax is given by T. Treat the subsidy rate as an exogenous variable and the tax rate as endogenous (you can assume that the subsidy is low enough that firms make positive after tax profits). There is no exogenous government spending (i.e. G = 0) (a) Formally define a competitive equilibrium in this economy. (b) Write down the household's optimization problem. Depict the solution to the consumer's problem in a diagram. (c) Write down the firms' optimization problem. Depict the solution to the firm's problem in a diagram. (d) Depict the competitive equilibrium in a diagram. (e) Show that your diagram in part (d) satisfies your definition in part (a). (f) Evaluate the following claim: "An increase in the wage causes consump- tion to rise.' (g) Evaluate the following claim: "An increase in the subsidy rate increases the well-being of consumers because it makes consumption goods cheaper.&quot