5. The economics of Tasmanian ferry tickets (or: The mystery of the disappearing subsidy). Read this recent article from ABCNews: (https://www.abc.net.auews/2021-02-04/tas-andrew-wilke-asks-pm-to- investigate-tt-line-pricing/13122070). Suppose you work with the very confused ministers mentioned in this article... [Is this how you felt at the end of week 2? And so easy to fix: just more economics!) .. and are tasked with providing a report to explain what has happened to the price of ferry tickets on TT-line. Assume these ministers have very little prior knowledge or economics, but that they don't like to appear ignorant, so it's best to spell everything out for them. Build your analysis as follows: a. *With the help of a diagram, provide a general and qualitative analysis to show how the implementation of a subsidy would normally affect a market. Explain how subsidies affect buyers, sellers and market efficiency. [Note: analysis of consumer and producer surplus under subsidy is an exercise only for the very brave. This is much trickier compared with taxes, which is why we assess these welfare effects of taxes, but not of subsidies, in this unit. ] b. ** Under ceteris paribus conditions (i.e. nothing else changes other than the subsidy being implemented), is it possible for a subsidy to provide little or no benefit to consumers? Under what circumstances might this occur? Use a diagram to aid your explanation. . ** Using the information provided in the article, provide a possible explanation for how prices of ferry tickets could have gone up (rather than down) following the implementation of the subsidy