Consider the market for bread loaves, in which the demand and supply are given by the following functions:

Qs = 300 + 800P Qd = 1,500400P

where P denotes price.

(a) [ Determine the equilibrium market price and quantity.

(b) On a diagram, illustrate the supply and demand functions.

(c) Calculate the total revenue if this price and quantity are traded in the market.

Due to a shortage of yeast, suppliers are willing to offer a smaller quantity at each price.

(d) Assuming suppliers reduce the supply at each price by 200 loaves, write down the new supply function.

(e) Calculate the new equilibrium market price and quantity.

(f) Calculate the amount of subsidy per loaf of bread that the government would need to pay in order for the suppliers to be willing to supply the same quantity as before. State the price paid by the consumer and the price received by the supplier in this case.