6.9 Suppose that the demand curve for wheat is Q = 100 - 10p and the supply curve is Q = 10p.

The government provides producers with a specific subsidy of s = 1 per unit.

a. How do the equilibrium price and quantity change?

b. What effect does this tax have on consumer surplus, producer surplus, government revenue, welfare, and deadweight loss? (Hint: See Solved Problem 9.5.) A