mm The market demand for a life saving drug is 04 I 400 (so demand is completely inelastic). The government intends to place a 5 l Ufunit tax on producers. a) Suppose supply for the drug is Q. - 10P. What is the equilibrium price before the tax? What is the equilibrium price after the tax? b) How much of the tax is borne by consumers? How much is borne by producers? c) Now suppose new alternatives to the life saving drug are now available in the market so the demand no longer completely inelastic. Suppose demand is now Os 3 200 101' and supply is Q. =- lOP. Again, consider the $10 tax on producers. What is the equilibrium price before the tax? What is the equilibrium price aer the tax? d) How much of the tax is borne by producers? How much is borne by consumers