||In a competitive market, the industry demand and supply curves are P = 70 – QD and P = 40 + 2QS, respectively. a. Find the market’s equilibrium price and output. b. Suppose that the government provides a subsidy to producers of $15 per unit of the good. Since the subsidy reduces each supplier’s marginal cost by 15, the new supply curve is P = 25 + 2QS. Find the market’s new equilibrium price and output. Provide an explanation for the change in price and quantity. c. A public-interest group supports the subsidy, arguing that it s consumers and producers alike. Economists oppose the subsidy, declaring that it leads to an inefficient level of output. In your opinion, which side is correct? Explain carefully.