The Demand and Supply of Pickles Are Given by Q^D

Multiple Choice

The demand and supply of pickles are given by Q^D = 300 - 500P and Q^S = 400P - 150, where P is the price per pickle and Q measures the quantity of pickles in millions. Suppose the government creates a subsidy of $0.25 per pickle. Which of the following statements are TRUE?
I. Without the subsidy, the equilibrium quantity of pickles is 75 million.
II. With the subsidy, consumers pay 38.9 cents per pickle.
III. With the subsidy, producers receive 75 cents per pickle.
IV. With the subsidy, the equilibrium quantity of pickles is greater than 100 million.

A) II, III, and IV
B) I and III
C) II and IV
D) I, III, and IV