John Jones has contracted our services to analyze the impact of a potential $7 excise tax on mini van rentals that has been recently proposed. He is concerned about the impact the tax will have on the welfare of the rental companies in his district.

The research team has already conducted some preliminary analysis and obtained the following estimates of monthly demand and supply in the local market: Q^d = 5005P and Q^s = 2P60. Currently the average price per daily mini van rental is $80 in the local market and 100 units on average are rented each month.

I would like you to estimate the impact the tax will likely have on the market price and quantity of mini van rentals. Do make sure to quantify how the tax burden will be split between consumers and producers based on changes in their respective surplus areas. Depending on who is impacted most by the tax.