C. Taxes imposed. A tax of 1: per good is placed on the good. For example, if the firm selling price is 50, and r - 8, then for every good sold, firms receive El], and buyers pay 53. With algebra, this means that if firms reoeive price P5, then buyers must pay Pei-F5+r-(C+DQ) +r. The paid price must be on the Demand curve, so Pei-PD-aBQ. Find the new formula for the equilibrium quantity, which is called 0:, instead of QM. (Hint. Set PM on the seller side equal to PP')' on the buy side, and solve for 0:.) D- Lett-Eu. [i] Find the Quantity QT. (Show all steps.) (ii) Find the price buyers pay, PM. {Show steps.) {iii} Find the price firms receive, P5. [iv] Find the differenoe between what buyers pay. PM, and what firms receive, P5. E. Draw the full supply and demand diagram that has both pairs, (QM,PM] and [091%]. Make sure that all of the correct numbers show up on the right spots on the vertical and horizontal axes. 2. Impact of taxes An economy has a demand curve given by: PD = A - B Q, [1) and a supply curve given by P5 = C + D Q. (2) A. Find and the equilibrium price [Pa] and quantity,r [QE]. Your result is to he an equatien, not a number. Numbers came later, not yet. (Note an scaring: 4|] percent for correct answer, 60 percent for clear steps to getljng to the answer). Hint. The equation for the quantity will prelsalilj.r have a term like: 1")" Q = m- B. Let the numbers be given by: A - 3|] B - 4 (2-12 13-2 [i] Find the numerical values for the market quantity, QM. (ii) Using QM, nd the price an the demand curve {Show all steps.) (iii) Using QM, find the price on the supply curve. (Again, shew steps}