6. (10 points) This year the Biden administration started the application process for semiconductor manufacturing subsidies under the $53 billion Chips Act. Semiconductors are an essential component of electronic devices, enabling advances in communications, computing, healthcare, military systems, transportation, clean energy, and countless other applications. Companies receiving subsidies will be required to share part of their profits with the government and limit stock buybacks and dividends. Companies are also expected to use union workers, as well as U.S.-made iron and steel for the construction of facilities, while providing affordable child care for workers. (WSJ 02/2023)

C. Use Supply/Demand analysis to discuss how will subsides affect the price and quantity of US-made iron and steel.