A cash-starved town decides to impose a $5 excise tax on T-shirts sold. The following table shows the quantity demanded and the quantity supplied at various prices.

Price quantity quantity

per shirt demanded supplied

$19 0 60

$16 10 50

$13 20 40

$10 30 30

$7 40 20

$4 50 10

a. What are the equilibrium quantity and price before the tax is implemented? Determine the consumer and producer surplus before the tax.

b. What are the equilibrium quantity and the equilibrium price a consumer pays after the tax is implemented? Determine the consumer and producer surplus after the tax.

c. How much tax revenue does the town generate from the tax?