The demand and supply functions for a good $P per ton of potatoes are given as;

Demand function P_d = 450 - 2Qd

Supply function P_s = 100+5Qs

(a) Calculate the equilibrium price and quantity

(b) The government provides a subsidy of $70 per unit (ton) sold.

(i) Write down the equation of the supply function adjusted for the subsidy.

(ii) Find the new equilibrium price and quantity algebraically and graphically.

(iii) Outline the distribution of the subsidy that is calculated, how much of the subsidy is received by the consumer and the supplier.