Suppose that the State of Massachusetts

Massachusetts decides to subsidize the cost of purchasing a treadmill for cardiacpatients, as prescribed by their doctors. Prior to theprogram, the equilibrium price of treadmills was$800, and the equilibrium quantity purchased was50,000.

The state decides to subsidize $700

700 of the cost of thetreadmill, and with thesubsidy, the quantity that consumers wish to purchase is70,000. Manufacturers are willing to supply this quantity at a price of$1,000.

The cost of this program to the State of Massachusetts is what?

.

After thesubsidy, consumers will pay how much of the cost of thetreadmill, and the state will pay how much?

Can you me step by step to get these answers?