The demand and supply functions for front stalls concert tickets is given by the equations P = 400 – 4Q and P = 40 + 5Q respectively where £P is the price per ticket and Q is the number %3D of tickets (quantity). To increase attendance at concerts, the arts council gives a subsidy of £15 per ticket. (a) Write down the equation of the supply function which incorporates the subsidy (assuming no commission). (b) Plot the graph of this supply function and the supply function given question 4 on the same diagram. Describe the effect of the subsidy on the graph of the supply function (c) Calculate the new equilibrium price and quantity. Confirm your answer graphically.

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