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Hello! Please, draw graphs and provide the answer graphically, thank you! Consider the following demand and supply equations: Q=28P^d and supply is perfectly elastic, described

Hello! Please, draw graphs and provide the answer graphically, thank you!

Consider the following demand and supply equations:Q=28P^d

and supply is perfectly elastic, described by the equationP^s =20

Consider the following cases:

  1. A tax ofT=1 per unit is imposed.
  2. A subsidy ofS=10 per unit given.

Find the following values:

Case with tax:

  1. Amount of tax paid by consumers
  2. Amount of tax paid by producers
  3. Government Revenue from the tax
  4. Consumer surplus before tax
  5. Producer surplus before tax
  6. Social surplus before tax
  7. Consumer surplus after tax
  8. Producer surplus after tax
  9. Social surplus after tax
  10. Dead Weight Loss

Case with subsidy:

  1. Amount of subsidy received by consumers
  2. Amount ofsubsidy receivedproducers
  3. Government Expenditure from the subsidy
  4. Consumer surplus before subsidy
  5. Producer surplus before subsidy
  6. Social surplus before subsidy
  7. Consumer surplus after subsidy
  8. Producer surplus after subsidy
  9. Social surplus after subsidy
  10. Dead Weight Loss

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