2. Suppose demand and supply are given by Qd, = 7-, and Qs =P- a. Determine the equilibrium price and quantity and interpret your answer clearly. b. Suppose a $6 excise tax is imposed on the good. Determine the new equilibrium price and quantity. Show the existing and new equilibrium graphically, given that there is an excise tax imposed on the good. Also, interpret your graph briefly (1 to 2 sentences only). d. Given the $6 excise tax, how much is the consumer and producer surpluses? Interpret your result (1 sentence only). Given the $6 excise tax, how much is the deadweight loss? Interpret your result (1 sentence only).

A1-1. Imagine that a market for a good is characterized by the following supply and demand equations: QS = –35 + 35P QD =100 – 10P where QS and QD are quantities in units and P is the price per unit. (a)  Graph the supply and demand curves with quantity on the horizontal and price on the vertical axis. Be sure to calculate the P and Q intercepts for demand and the P intercept for supply. Calculate and illustrate the equilibrium price and quantity. [Hint: Show your work.]  (b)  Calculate both the demand and supply elasticity around the equilibrium point. [Hint: you can use either the point method or the average arc (midpoint) method.]  (c)  If a regulator imposes a quantity restriction by granting quotas for 60 units of output to existing producers, what is the new price and quantity traded? Does this policy create deadweight loss (DWL) in the market? Briefly explain and identify any DWL in your diagram.  (d)  What is the value of a unit of quota? Illustrate in your diagram.…

Don't use chatgpt and make sure you include the graphs needed   (a) Suppose in a competitive market, the market demand curve for salt is infinitelyinelastic. What is the impact of a per-unit tax (i.e. a specific tax) on the priceof salt that consumers pay?(b) Suppose the demand curve for butter is Q = 50 − 3P and the supply curve isQ = 2P. Suppose the government announces a per-unit tax of 1 on the priceof butter. Tax on butter can be seen as a ’fat tax’. What is the overall effectof a fat tax on the consumers? (c) If you were a policymaker and wanted to promote a fat tax in the UK, whatwould you cover in your policy campaign?

USE TABLE #1: For the market for electric automobiles, the equilibrium price is $ ________________ and the equilibrium quantity is___________  .  (Remember to use a comma, if a comma is needed and to include the decimal point and two numbers to the right of the decimal point).