3. Assume that the state government is interested in subsidizing the local production of steel. The current price of steel is $1600 per ton and the government wants to provide a subsidy of $100 per ton. Assume that the elasticity of demand is 2, the short-run elasticity of supply is 2, and the long-run elasticity of supply is infinite. Furthermore, assume the equilibrium quantity exchanged (before the subsidy) is 3700 tons per month. a. Use a diagram to indicate the pre-subsidy situation in this market. Label the price consumers pay Pco, the price producers receive Ppo, the quantity supplied Qpo, and the quantity demanded Qco. b. In your diagram above, indicate the short-run post-subsidy situation in this market. c. Label the price consumers pay Pc1, the price producers receive Ppi, the quantity supplied Qp1, and the quantity demanded Qc:. d. In your diagram above, indicate the long-run post-subsidy situation in this market.