4)

The demand and supply functions for a good are given by the equations:

=100^-0.2Q and =20^0.4

a) Determine the equilibrium price and quantity (note: round up your solutions to the nearest integers and use the rounded-up values in part (b))

b) Calculate the consumer and producer surplus at equilibrium.

c) The inverse demand function for a good is Q=10-P/2P Find the consumer's surplus when the price P = 2

d) The demand and supply functions for a good are given by the equations:

=32+²

and

=140²/3

where, and are the price and quantity supplied and quantity demanded, respectively.

Calculate the producer surplus and consumer surplus at the equilibrium point.

e) Explain the effect on the producer's surplus from part d) if the government imposes a fixed tax on this good.