Please teach me how to solve the following question.
"Consider Queen Klubber, ruler of a small island nation. Her subjects have demand for coconuts of D(P)= 1200 - 100P while supply is described by S(P) = 100P. Suppose the queen has decided she wants to give her subjects a more attractive price for coconuts. She elects to impose a fixed, per unit subsidy. The subsidy works like this: the queen imposes a new rule that says sellers get a 2 dollar refund for each coconut sold.
The queen is quite upset with the new policy, mumbling something about "ripoff artists" in reference to coconut producers. The queen is threatening to end the $2 per coconut subsidy unless the price after subsidy falls to a level $2 below the price prior to the subsidy. Use your economic expertise to analyze the queen's complaint."