Which government intervention results lower deadweight loss

Question

Problem

In a perfectly competitive market, the market demand curve is Q_d = 10 - P^d , and the market supply curve is Q^s =1.5^Ps .

a) Verify that the market equilibrium price and quantity in the absence of government intervention are P_d = P_s = 4 and Q_d = Q_s = 6.

b) Consider two possible government interventions: (1) A price ceiling of $1 per unit; (2) a subsidy of $5 per unit paid to producers. Verify that the equilibrium market price paid by consumers under the subsidy equals $1, the same as the price ceiling. Are the quantities supplied and demanded the same under each government intervention?

c) How will consumer surplus differ in these different government interventions?

d) For which form of intervention will we expect the product to be purchased by consumers with the highest willingness to pay?

e) Which government intervention results in the lower deadweight loss and why?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.