Consider a competitive market in which demand and supply curves are straight lines and have equal slopes. Graphically, this means that they are mirrors of each other, and (at the equilibrium) the elasticity of demand is equal to the elasticity of supply. The suppliers are located in two separate and equally-sized regions, which have the same characteristics. A government oers a $2.00 subsidy to the suppliers from one of the regions (the other region does not enjoy this subsidy). Show graphically that the impact of such subsidy is to decrease the price of the commodity by $0.5.