economic question.

1. Suppose the supply and demand schedules for songs on Spotify are given by the table below: Price Quantity demanded Quantity supplied 0 32 0 0.5 28 1 1 24 6 1.5 20 11 2 16 16 2.5 12 21 3 8 26 3.5 4 31 4 0 36 1.1. Determine the equilibrium price and quantity. Explain. (2 marks) 1.2. What is the price-elasticity of demand when the price is equal to 1.5? What is the price- elasticity of supply when the price is 3.5? (2 marks) 1.3. Suppose the government implements a tax paid by buyers. The tax rate per unit is $1. Determine the new quantity traded in this market and the prices paid by buyers and sellers. (2 marks) 1.4. How does consumer surplus change when the tax is implemented? How much money does the government collects as tax revenue? (2 marks) 1.5. Calculate the deadweight loss resulting from the tax implementation. (2 marks) 1.6. Suppose that the government wants to promote trade in this market considering that many people are staying at home because of the pandemic. The subsidy per song downloaded from Spotify is $1. How many songs are downloaded and what is the price paid by buyers and received by sellers? (2 marks) 1.7. Calculate the deadweight loss of the subsidy. (2 marks)