Consider a market with the following demand and supply curves: Demand: Qd = 500 2P Supply: Qs = 60 + 5P a.Compute the equilibrium price and quantity.

b.Graph the demand and supply curves. Illustrate on the graph the equilibrium price and quantity. Calculate the consumer surplus and the producer surplus.

c.Assume a per-unit tax of 14 is imposed. Calculate the equilibrium price paid by buyers, price received by sellers, and quantity and illustrate them in the graph you draw in part b. Calculate the deadweight loss.