Suppose that a market has the following demand and supply functions (normal): Qd = 5 -0.5P and Qs = P-1. Graph the demand and supply (you will use this for the following questions) What is the equilibrium price? (Do not use a dollar sign in your answer.) What is the equilibrium quantity? Question 43 What is total surplus at this equilibrium? If the government imposed a $3/unit excise tax on producers in this market, what would be the new price that consumers pay? D Question 45 If the government imposed a $3/unit excise tax on producers in this market, what would be the new price that producers receive? If the government imposed a $3/unit excise tax on producers in this market, what would be the DWL? Question 47 If the government imposed a $3/unit excise tax on producers in this market, what would be the value of consumer surplus? If the government imposed a $3/unit excise tax on producers in this market, what would be the value of producer surplus?
