3) Suppose the market demand is QD = 120 2P , and the market supply is QS = 40 + 2p. (a) What is the inverse demand and the inverse supply? (b) If the market is perfectly competitive (many firms that take price as given), what is the equilibrium price and quantity? (c) Suppose that the government decides to impose a tax of $10. What is the new equilibrium price and quantity? (d) Draw a graph showing the deadweight loss created by the tax. Numerically calculate the deadweight loss created by the tax (using the formula for the area of a triangle). (e) Do buyers or sellers bear more of the burden of the tax (whose price changes more after the tax is imposed, the buyers' or the sellers' price)? What does this imply about the elasticity of supply and the elasticity of demand? Hint: Use the formula for the tax share as a function of the elasticities of supply and demand.