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Please help 1. Recently the city of Portland, Oregon decreased transit fares for low-income residents. One analyst estimates that the program would drop the price

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1. Recently the city of Portland, Oregon decreased transit fares for low-income residents. One analyst estimates that the program would drop the price of monthly transit passes 75% for eligible residents. a. What areas on the graph below correspond to the changes in consumer surplus and government surplus in the primary market of transit rides when fares are reduced? Transit Trips by Low-Income Riders I'rirx.' Number of trips. b. Based on part (a), what is the change in total surplus, or gross benets, of this policy? 0. What if some of the new transit riders are drawn from the ranks of car drivers; that is, what if the number of car trips taken declines as a result of this policy? Should policy makers \"count\" any changes in surplus occurring in the market for car trips? Explain

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