($Igallon) 82005 $2.34 D2005 Millions of 9'6 barrels! week a) Suppose the current equilibrium price of cheese pizza is $10, and 10 million pizzas are sold per month. After the federal government imposes a $0.50 per pizza tax, the equilibrium price of pizzas rises to $10.40, and the equilibrium quantity falls to 9 million. Illustrate this situation with a demand and supply graph. Be sure your graph shows the equilibrium price before and after the tax, and the equilibrium quantity before and after the tax. How is the tax burden divided between buyers and sellers? Label the graph clearly. (3 points) b) Imagine that the community you live in decides to enact a rent control of $700 per month on every onebedroom aparUnent. Using me following table, determine the market price and equilibrium quantity without rent control. How many onebedroom apartments will be rented after the rentcontrol law is passed? Draw a demand supply diagram and show the effect of rent control. What will happen if rent ceiling is set at $900? Label the graph clearly. (3 points) Monthly rent Quantity demanded Quantity supplied $600 700 240 $700 550 320 $800 400 400 $900 250 480 $1 ,000 100 560