F F 11:30 K T of O Demand is described by Q = 12-P, and supply by P = 3 + (Q/2). A tax of $3 per unit is imposed on the water consumers above. (Working space below) Q = 12 - ( 3 + = Q ) = 12 - 3 - 1Q 3 Q - 9 2 = 6 P = 6 IST EM 6. What is the new market price? A B C D E 3 4 6 8 19 THE CORRECT ANSWER HERE IS 5, WHICH WAS NOT LISTED. 8 IS THE FULL PRICE TO CONSUMERS, BUT NOT THE TRANSACTION PRICE 7. What is the new market quantity? A B C D E 5 6 7 8 8. What is the new consumer surplus? A B C D E 4 18 14 16 32 40 69 V