(25) 4. Widgets are supplied by a competitive constant-cost industry, which is in both long run and short run equilibrium. The following graph shows the market demand curve and the market short-run supply curve: $8 $7 $6 $5 $4 $3 $2 $1 100 200 300 400 500 600 700 800 There are 40 firms in the industry. One day the government announces a permanent excise subsidy (so that from now on, firms will receive a certain fixed amount from the government per widget produced). As a result, the price of a widget falls in the short run to $3. a) In the short run, what is the new quantity produced per firm? b) In the long run, what is the new quantity produced per firm? c) In the long run, how many firms enter or leave the industry? Be sure to justify your answers