Calculate the changes in producer and consumer surplus, deadweight loss, and government

revenue or expenditure (if any) in the market system defined by:

= 12 ; = 2 ; and in equilibrium =

.

a. A subsidy to consumers of $3 per unit purchased.

b. An enforced price ceiling of $6.

c. Explain why the figure for dead weight loss in b. is likely an

underestimate of the actual losses.