For the next five questions consider tax incidence. Suppose the market supply and demand for guitars in Happy Valley are given by:

D: P=1500-0.5Q

S: p=150+0.25Q

6. What is the equilibrium price and quantity of the product?

7. What is the price elasticity of demand at the equilibrium price?

Now, assume there is a $30 per unit excise tax levied on the consumers of guitars.

8. What price will buyers pay after the tax is imposed?

9. What is the quantity of the good that will be sold after the tax is imposed?

10. What is the deadweight loss created by the tax?