1.The economics of Tasmanian ferry tickets . Read this recent article from ABCNews:

https://www.abc.net.au/news/2021-02-04/tas-andrew-wilke-asks-pm-to-investigate-tt-line-pricing/13122070

a.*With the help of a diagram, provide a general and qualitative analysis to show how the implementation of a subsidy would normally affect a market. Explain how subsidies affect buyers, sellers, and market efficiency.

b.** Under ceteris paribus conditions (i.e. nothing else changes other than the subsidy being implemented), is it possible for a subsidy to provide little or no benefit to consumers? Under what circumstances might this occur? Use a diagram to aid your explanation.

c.*** Using the information provided in the article, provide a possible explanation for how prices of ferry tickets could have gone up (rather than down) following the implementation of the subsidy.