1. Assume that the federal government has decided to impose a tax on handguns. The market for handguns is currently at an equilibrium with the price per gun being $200 and the quantity exchanged being 40,000 guns per month. The elasticity of demand is 0.7 and the elasticity of supply is 2.3. The government plans on imposing a tax of $50 per gun. a. Use a diagram to indicate the situation in this market before the tax is imposed. Label the price consumers pay Pco, the price producers receive Ppo, the quantity supplied Qpo, and the quantity demanded Qcy. b. In your diagram above, indicate the situation in this market after the imposition of the tax on guns. Label the price consumers pay Pc), the price producers receive Pp, the quantity supplied Qpi, and the quantity demanded Qc;. Clearly indicate the amount of the tax (per unit) as well as the amount of revenue the government will collect from this tax. c. Calculate the amount of revenue the government will collect from this tax. What is the burden on consumers? What is the burden on producers