Consider a market for beer with a demand curve which is: Qd = 25 - 2p and a supply curve which is: Qs = 3P

a) Find the equilibrium price and quantity. Suppose that the government decided they wished to levy a $2 tax on suppliers.

b) Find the new price paid by the consumer and the price received by the seller.

c) Based on the tax sharing burden by both the consumer and the seller, comment on the relative elasticity of the demand and supply curve.

d) Calculate the tax revenue for the government.