3. [3 Marks] Assume linear supply and demand curves and no externalities. A $20 subsidy payable to sellers in an otherwise perfectly competitive market decreases equilibrium price from $100 to $96, and increases quantity transacted from 200 to 215. This subsidy decreased total surplus by how much? A. 60 B. 75 C. 150 D. 300 E. Either unable to determine or none of the above.
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