10. The government gives $2000 subsidy to home buyers. The demand curve is perfectly inelastic and the supply curve is upward sloping. The price sellers receive after the subsidy

A. is less than before the subsidy.

B. is higher than before the subsidy.

C. depends on the supply elasticity.

D. is unchanged.

11. This question is a continuation of 10). The price paid by home buyers after the subsidy

A. is reduced by $2000.

B. is unchanged.

C. is reduced by less than $2,000.

D. depends on the supply elasticity.

The answer for Q10 is D and the answer for Q11 is A. Can you explain the reason for each answer?