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Suppose that the market for automobiles has the following supply and demand schedules: Price of a Quantity demanded Quantity supplied car (thousands) (thousands) $38,000 130 25 $39,000 120 30 $40,000 110 35 $41,000 100 40 842,000 90 45 $43,000 80 50 844,000 70 55 $45,000 60 60 546,000 50 65 $47,000 40 70 $48,000 30 75 $49,000 20 80 1. Using this information, draw the demand curve and the supply curve for cars. What is the equilibrium price and quantity for cars? Assume the government levies a tax of $3000 per automobile. What is the price that consumers will pay for a car now? By how much has the price that consumers pay risen? Explain why this is less than the amount of the tax (given in question three)? What is the price received by the automobile manufacturers? Explain. Who bears more of the burden of the tax, producers or consumers? Explain. Illustrate the effect of this tax in your diagram question one How much revenue will the government raise with this tax? (Show your calculation.) Is the market efficient, with the $3,000 excise tax? Explain. Illustrate your answer with a diagram