Refer to Excise Subsidy. The deadweight loss created by the subsidy is represented by

The following questions refer to the accompanying diagram which shows the effects of an excise subsidy given to firms. The initial price and quantity are P0 and Q0, respectively. After the subsidy is granted, the equilibrium quantity is Q1, firms receive the price Ps, and consumers pay the price Pd.



a. area F + G.

b. area D + G + J.

c. area C.

d. area D.

d. area D.