3. Given the following inverse demand and supply functions: P = 44 - 2QD P = 12 + 205 (a) Determine the equilibrium quantity and the equilibrium price. (b) If the government imposes a $8/unit tax on the seller, determine the after tax equilibrium quantity and price. How much of the tax is paid by the seller and the buyer? (c) If the government now imposes a $10/unit tax on the buyer instead, determine the after tax equilibrium quantity and price. How much of the tax is paid by the seller, and how much is paid by the buyer? 4. The table below contains information for a handcraft shop in a small city in northern Alberta. The shop is operating in a competitive market, has a fixed cost of $25, and sells each unit of its craft for $42. Total VC TC MC TR MR ATC Profit 0 0 1 18 2 40 3 70 4 110 5 130 6 140 160 202 9 260 10 330 11 410 12 500 (a) Complete the TC, MC, ATC, TR. MR. and Profit. (3 marks) (b) Determine the profit maximizing level of output and price. What is its profit? Justify your answer. (1 mark)