1a) The government decides to subsidize the solar panels industry to encourage the adoption of solar panels and enhance its competitiveness. They decide to subsidize the producers by $10 for every unit of solar panel they produce. The demand and supply curves are Qd = 104 7P, Qs = 3P. As a result of the subsidy, buyers will pay $[Answer] less per unit.

1b) At the same time, the sellers will receive $[Answer] more per unit.

2a) Consider a market in which the demand is given by P = 79 - 2Q. The supply is given by P = 2Q. Now suppose that the government provides a subsidy of 18 dollars per unit. The increase in the equilibrium quantity is [Answer] units.

2b) Compared with the case without the subsidy, the welfare loss is $[Answer].

3a) The government decides to subsidize the solar panels industry to encourage the adoption of solar panels and enhance its competitiveness. They decide to subsidize the producers by $4.8 for every unit of solar panel they produce. The demand and supply curves are

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Demand Qd = 500 4.5P

Supply Qs = 5P

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As a result of the subsidy, buyers will pay $[Answer] less per unit.

3b) Continue with the last question. At the same time, the sellers will receive $[Answer] more per unit.