Consider a government per-unit subsidy of producers of tonsillectomies and cosmetic surgery. Assume that currently each procedure has the same price and sales (e.g. 100,000 @ $4,000 or some such number). Analyze the likely effects of the subsidy. What are the demand curves likely to be: elastic or inelastic? The cost of each subsidy, etc.

I need an explanation of the solution, the graph and solved mathematically