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The government wants to help the mohair sweater industry by giving producers a specific subsidy of $1.20 per mohair sweater.

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converting the demand function to inverse demand function to add subsidy to the price consumer pay and then equating the new demand with supply we get the quantity consumer buy.
Q=1200-22P
22P=1200-Q
P=(1200/22)-(1/22)Q
adding subsidy
P=(1200/22)-(1/22)Q+1.2
P=(1226.4/22)-(1/22)Q
converting back the demand curve
(1/22)Q=(1226.4/22)-P
Q=1226.4-22P

equating it with supply
1226.4-22P=-220+40P
62P=1446.4
P=1446.4/62

Q=1226.4-22*(1446.4/62)=713.16129

============
total subsidy =per unit subsidy *total quantity
=1.2*713.16129
=855.793548
the total subsidy is $855.79


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