(a)Given the equation below, construct a supply and demand diagram for a product which identifies a market equilibrium price of $2.50 and a market equilibrium quantity of 75 units. At the price of $2.00 producers are willing to supply 50 units. (5 marks)

Hint: Use the "Topic 2_Demand and Supply Algebraically" notes to help answer this question.

P = 5.50- 0.04*Q

(b)Use the same diagram as in (a) to show the imposition of a $1.50 tax on sellers of the product. What are the new consumer and producer prices and quantity traded in the market? (6 marks)

(c)How much of the tax is borne by sellers and how much of the tax is borne by consumers? (2 marks)

(d)Calculate the tax revenue received by the government and show this area on your diagram. (3 marks)

(e)Calculate the deadweight loss and show this area on your diagram. (4 marks)