1. Assume the government has set a goal in 2016 to be more environmentally friendly; to meet this goal the government has come up with a strategy of providing consumers income tax credits for installing an energy efficient heating source: (6 points)

a. Now assume that the market can be explained initially by the supply and demand curves Qd = -2p + 100 and Qs = 4p.  After the plan, the functions are   Qd = -3p + 150 and Qs = 4p.  Mathematically determine the amount of new total surplus generated. 

b. Generate a graph to show this total surplus change, including the intercepts of all functions.