3. Consider a simple village economy with food and energy (rewood), with a representative consumer and a representative producer. The demand for food is Q"! = 410 5pf 2pm and the supply of food is Q} = 60 + 333;, where pf, Q35, Q'} > 0. The equilibrium price of food is $40 / unit and of energy is $75/ unit. (a) (2) Are food and energy substitutes, complements or independent goods in demand? Why? Suppose the village headman imposes an excise tax of $5 / unit on food to be paid by the producer. Since we don't know the energy market we perform a partial equilibrium analysis. (b) (2) Find the new equilibrium price of food to the consumer and to the producer. Who bears a larger burden of the tax? (c) (2) How much is the change in consumer surplus and producer surplus? (d) (2) How much is the government revenue and the deadweight loss? What is the social cost of raising $1 of government revenue