n 2 points 9 Suppose the market for cans of soda can be modeled by QD = 120 P and Q5 = 2P - 30. (assume prices are in cents, so P = 150 means $1.50) Calculate the equilibrium price and quantity. P" = $0.50 cents and Q" = $0.70 cans. n 4points Q Because of an increase in obesity rates, public health ofcials want teenagers and adults to drink less soda. Therefore a tax of 15 cents is imposed on each can of soda. How does this affect the supply curve for soda? Calculate the new quantity sold after the per-unit tax is implemented, and solve for the new price that consumers pay. Does the supply curve for soda shift up or down? It shifts _ The new supply curve for soda is Qs = 2p60 . The new quantity sold is cans. The price consumers pay is cents. 10 3 points Q Calculate the amount of tax revenue collected from the tax, and the share (fraction) of the tax burden that the consumers bear. Are consumers more or less elastic than sellers? Tax Revenue = $ _ Consumers hear of the tax burden. Consumers are type your answer... elastic than sellers. 1 point Q Calculate the amount of deadweight loss resulting from this soda tax. Deadweight loss = 112.5 cents