Bl. In a closed economy, these are the demand and supply curves in the perfectly competitive apples market QD = 18 -1/2 P; Qs=2P a) What is the welfare effect of a $2.25 subsidy on apples producers? Explain by how much consumer surplus, producer surplus and total surplus change. Who benets most from the subsidy? [6 marks] b) Instead of calculating new CS and T5, are there other ways to understand who would get most of the subsidy gains? [2 marks] c) If the subsidy was given to consumers instead of producers, who would benets most from it? Why? [2 marks]