76 Longer Questions (1) The supply and demand functions for beer are given by: 591) = 5010 and m) = 100 (1'72 1) (a) How many bottles of beer will consumers demand if the price is 5? (b) At what price will demand be zero? (c) Find the equilibrium price and quantity in the market. ((1) Determine the inverse supply and demand functions ps(q) and pd(q). (e) What is lim palm)? qroo (f) Sketch the inverse supply and demand functions, showing the market equilib rium. The technology for making beer changes, so that the unit cost of producing a bottle of beer is l, whatever the scale of production. The government introduces a tax on the production of beer, of t per bottle. After these changes, the demand function remains the same, but the new inverse supply function is: 23'S(1)=1+t 4. FUNCTIONS (g) Show the new supply function on your diagram. (h) Find the new equilibrium price and quantity in the market, in terms of the tax, t (i) Find a formula for the total amount of tax raised, in terms of t, and sketch it for O S t 5 12. Why does it have this shape