he effect of a $0.50 per cone subsidy is to shift the demand curve upward by $0.50 at each quantity, because at each quantity a consumer's willingness to pay is $0.50 higher. The effects of such a subsidy are shown in the figure. Before the subsidy, the price is P1. After the subsidy, the price received by sellers is PS and the effective price paid by consumers is PD, which equals PS minus $0.50. Before the subsidy, the quantity of cones sold is Q1; after the subsidy the quantity increases to Q2