3. A subsidy is opposite of a tax. i.e. it is a payment from the government to people. Consider a proposal that pays a $10.00 per credit hour subsidy to UCO students. Suppose further that the elasticities of supply and demand are equal to one in the UCO

3.  A subsidy is opposite of a tax. i.e. it is a payment from the government to people. Consider a proposal that pays a $10.00 per credit hour subsidy to UCO students. Suppose further that the elasticities of supply and demand are equal to one in the UCO educational service market. Use a competitive supply/demand diagram to explain the legal and actual incidence of this subsidy.