I Suppose the graph betow represents the supply and demand for lottery tickets (with quantity measured in millions). The lottery tickets are sold by state governments to raise money for education. 25 ' 63 Q a. Why is the supply curve horizontal? Use the concept of elasticity to explain your answer. b. Suppose D is the original demand curve so that the original equilibrium occurs at a price of $1.00 and a quantity of 42. What is consumer surplus at the original equilibrium? How much revenue do state governments earn by selling the lottery tickets? c. If lottery tickets are an inferior good and incomes fall. which curve represents the new demand - D1 or Dz? What is the new equilibrium price and quantity? d. What is consumer surplus at the new price and quantity? What is state revenue at the new price and quantity