2. The market for ethanol-based gasoline is competitive. The demand curve is Q = 12 - Pd and the supply curve is Qs = Ps - 2. A subsidy of $2 per unit is granted by the government to consumers of ethanol-based gasoline. (a) What will the equilibrium quantity be? (b) What is the actual price paid by a buyer? What price will a producer receive? (c) At the equilibrium, calculate the total cost of the subsidy to the government and the deadweight loss. (d) How much is the distortion in output due to the subsidy? What other government policy might generate the same distortion? (hint: is too much, or too little, being produced?)