Question content area
Part 1
Suppose that the market demand function for cows is
Upper Q equals 1 comma 000 comma 000 p Superscript negative 2Q=1,000,000p−2,
where Q is the number of cows per month and p is the price per cow. The market supply function is
Upper Q equals pQ=p.
a.  What are the equilibrium price and quantity of cows? What is the consumer surplus, the producer surplus, and welfare?
b. Now, suppose that the government provides a subsidy of
$100100
per cow. What are the new equilibrium price and quantity, the consumer surplus, the producer surplus, and welfare?
Enter your responses below as whole numbers.