Consider the market for houses in Newtown (unit: one house). The quantity demanded in Newtown is Qd = 1000 - 200p and the quantity supplied is Qs = 50p where p is the price of one house (in a million $).

1. Derive and show the equilibrium quantity and price for houses graphically.
2. Assume that the government imposes a per-unit tax on the house which has to be covered legally by the seller of t = 0.1 (which means a tax of $100,000). Show graphically how the supply curve will change in this situation. Identify the new equilibrium quantity and price post-tax in the graph. Label the diagram.
3. Calculate the new level of QT exchanged in the market following the tax, the price paid by consumers and the price received by sellers.
4. Calculate the government revenue, the producer surplus and the consumer surplus following the imposition of the tax.
5. Calculate and show graphically the deadweight loss associated with the tax.