B. * In Section 19B.1, we derived the impact of a marginal per-unit tax on the price

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B. * In Section 19B.1, we derived the impact of a marginal per-unit tax on the price received by producers;

that is, dps

/dt.

a. Repeat the analysis for the case of a per-unit subsidy and derive dps

/ds where s is the per-unit subsidy.

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