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Let us think of a \"ration system" as discussed in class for providing subsidized rice to (poor) consumers. (a) Governments need to rst procure rice from farmers. In the Indian system, how does the government ensure that the farmers sell the government rice? (4 marks) Let us call the price the government pays the farmer as PF. (b) Why should the government not price rice at PF to the poor consumers? (3 marks) Let us call the price the government charges consumers as PC Typically, PC is ________ than PF (HINT: I want one of these two answers: (a) Higher (b) Lower) (3 marks) (c) Now that we know PF and PC, what is the per-unit cost the government incurs in running this system, if the only cost the government incurred was related to prices? In other words, what is the subsidy the government gives out for every unit of rice it distributes? (c) Now that we know PF and PC, what is the per-unit cost the government incurs in running this system, if the only cost the government incurred was related to prices? In other words, what is the subsidy the government gives out for every unit of rice it distributes? (HINT: I want an expression in terms of PF and PC) (3 marks) (d) Describe one way in which a ration shop dealer can manipulate the system to indulge in corrupt activities (3 marks) (e) This dual price system -- of PC and PF -- may be complicated, but why may this be a better system than leaving it to the markets entirely? (4 marks) (f) If, instead of a ration system, the government introduced a food-stamp system. Here, the poor are given stamps that they use to procure grains from a local market. Name one advantage and one disadvantage with this system. (4 marks)