1.The supply and demand for soda in a market are represented by Q^S=50P - 60 and Q^D = 12 - 8P, where P is the price per bottle and Q is in millions of bottles per year.

a.Calculate the equilibrium price and quantity. Plot your results in the graph and label them completely.

b.Calculate the price elasticity of demand and the price elasticity of supply at the current equilibrium. Interpret.

c.Calculate the share of a tax that will be borne by consumers and the share borne by producers.

d.If a tax of 10 cents per bottle is levied, what price will buyers now pay for a bottle? What price will sellers receive?