1. Helium is the second most abundant element in the universe and is used in a variety of essential equipment such a scuba-diving tanks and hospital MRI scanners, as it is one of the best coolants. However, helium is incredibly difficult to obtain and is currently largely produced as a byproduct of natural gas drilling.

The data below shows the producers and consumers in the helium market.

1. Based on the producer and consumer data, what do you predict will be the equilibrium price and quantity for helium in the market? Please show your work and explain your reasoning.

2. A $22 tax on the sale of helium is under consideration. All producers would have pay a tax of $22 per million cubic feet produced. Find what the producers will now earn per million cubic foot of helium and how the tax will impact the quantity of helium produced & sold, and if it will change which producing countries will sell helium.

Dataset - Reference

Country Capacity (million cubic feet) Cost to supply (WTS) Consumers WTP 11 38 64 71 B 8 D Quantity demanded (million cubic feet) 3000 $ 2500 $ 2500 $ 2000 $ 2000 $ 2000 $ 1500 $ 1500 $ 1000 $ 1000 $ United States Algeria Australia Canada China Indonesia Poland Qatar Russia Tanzania Other countries 4000 $ 3000 $ 2500 $ 2500 $ 2500 $ 2000 $ 1500 $ 1500 $ 1500 $ 1000 $ F 17 45 12 23 26 32 13 20 36 45 65 70 52 1 13 51 1000 $ 28 14 O Z3a 1000 $ 500 $ 500 $ 500 $ 500 $ 48 28 61 19