14.4 Suppose the demand for frisbees is given by g = 1 0 0 - 2P and the supply by Q=20 + 6P.

a. What will be the equilibrium price and quantities for frisbees?

b. Suppose the government levies a tax of $4 per frisbee. Now what will be the equilibrium quantity, the price consumers will pay, and the price firms will receive? How is the bur den of the tax shared by buyers and sellers?

c. How would your answers to parts

(a) and

(b) change if the supply curve were instead Q = 70 + P?

What do you conclude by comparing these two cases?