5. Suppose that the demand is QD = 1100 2P, and that the supply is Q = 100 + 2P. So the inverse demand is P = 550 .5Q, and the inverse supply is

P = .5Q - .50.

(a) If the market is perfectly competitive, what is the equilibrium price and quantity?

(b) Suppose that the government decides to impose a tax equal to $100. What is the new equilibrium output?

(c) In general, if supply is more elastic, will more or less of a tax be born by consumers?