Imagine a company, A, that sells goods through its physical stores as well as an online trading platform. Initially there is no sales tax on goods irrespective of whether they are sold through online or physical stores. Then assume the government imposes a sales tax of $2 per unit of the good [assuming a fixed amount of tax] only on goods which are sold at the physical store. The company collects the following data on its sales, which is provided in the following Table 1: Table: 1 Price per unit of goods Quantity sold at Quantity sold via online at Physical store physical store at price 5}" per unit [as they are not subject to sales tax] Before sales T ax After sales T at -_ a. Calculate the own price elasticity of demand for the quantity sold at the physical store? b. Based on your results to part [a], do you think consumers who purchased at the physical store are responsive to the sales tax? Explain. c. Calculate the total revenue of company A before and after the sales tax. Does the sales tax affect company A's total revenue? Explain. d. Calculate the crossprice elasticity of the. quantity sold online with respect to the price per unit of goods sold atthe physical store. Use your answer to explain what cross price elasticity measure indicates. e. Now suppose Table 1 provides us equilibrium price and quantity, then draw a demand and supply diagrams for the market of company A's physical store as well as its online store. Name and fully label your diagram including both axes and indicate and explain points of interest using P for price [P1, P2 etc} and leor quantity [u 02 etc]. Hints: For simplicity assume that supply curve is upwardly sloped, and the diagrams are consistent with Table 1. f. Now work further on your diagram in part (e) to show the impact of a sales tax on quantity sold at the physical store. Illustrate and explain how the sales tax affects the consumers of the physical store. Also indicate the area on the diagram that represents tax revenue. How much burden of tax is born by an individual consumer as well as an individual seller? g. Classical economists argue that, everything else remains the same (i.e. in the absence of externalities or market failure), any sort of government intervention on a competitive market leads to inefficiency. If so then answer the following questions: Do you think that the classical economists are right, in particular, for our case of where a sales tax is imposed on the sales of a physical store? Calculate deadweight loss (if it exists!) for physical store (after sales tax) in supporting your argument and also show the deadweight loss with an appropriate diagram