Part II- From the following diagram, use the wedge shortcut to answer these questions: a. If a subsidy of $5 were imposed, what price would buyers pay and what price would suppliers receive? b. How much would the subsidy cost the government? (Show your work) c. How much deadweight loss would be created by the subsidy? (Show your work) Price $11 10 9 $ 6 5 1234 in Supply Demand 78 9 10 Quantity

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