Given the following supply and demand curves for widgets,

Q_S= 10P and Q_D= 1050 - 4P,

a) What are equilibrium price and quantity?

b) Now assume that widget producers feel that their incomes are too low and have convinced the government that price supports are necessary. The government agrees to buy as many widgets as necessary to keep the price at $100. How much would this program cost the government? Show calculations and illustrate with a diagram.

c) How much would the program cost consumers in terms of lost consumer surplus? What would need to be true about the demand curve for the lost consumer surplus to exceed $18,000?

d) Show the overall net welfare effects of the price support policy. Both calculations and complete graph, please.