Consider a perfectly competitive market, with supply represented by Q=3P and demand is described by Q=20-P (where P is the price per mmbtu of natural gas and Q is 1,000 of mmbtu of natural gas). The taxing authority is considering imposing a $4 per mmbtu on sellers, but wants information with which to make their decision. They've asked an economist to provide an assessment that includes the following. In each case, the economist must show their work graphically and provide a written explanation of the result.

1. The new estimate price, after tax, that consumers will pay
2. Anestimated percentagedecrease in the quantity of natural gas traded in this market after the tax is imposed?
3. The expected tax revenues from the tax.
4. The estimated impact on consumer and producer welfare from this tax.
5. A recommendation of whether the tax should be imposed on consumers or producers and why.