1. The demand for Razorback football tickets is = 360 10 and the supply of the football tickets is = 20, which implies a ticket price of $12 without tax or subsidies. In order to encourage more attendance, Arkansas state government subsidizes the ticket price by reimbursing $4 per ticket to football fans. Calculate the economic incidence of the subsidy for the fans and for the UofA (the seller) as follows:

a. What is the equation for the new demand curve?

b. What are the new equilibrium price and quantity

c. How much per unit of the subsidy do fans receive?

d. Sketch (a) in supply-demand diagram