p..- {25 marks}"ll1e demand and supply curves for beer are Deanand: Qd = 50 lPa Supply: Q; = 2P! where Go is the quantity of beer demanded per year (in millions of cases}, Q5 is the quantity of beer supplied {in millions of cases), and P is the price is of beer (in dollars per case}. a] Assume that the beer indusny is perfectly cumpetitivc Calculate the equilibrium quantity and price of beer. (Hint: Replace Qd = Q, 05 = Q, Pd = P and Ps = P in the demand and supply eqnetiune given above and then set demand = snppty to solve for the equilibrium price and quantity}. {5 marks) 1:) If a tax of $5 per case is imposed, calculate; i. the price the consumers pay. {3 marks) ii. the price the sellers receive. {3 marks} iii. the change in consurner surplus and producer surplus. {4 marks) iv. the dead weight loss. {2 marks} c] Starting with a perfectly competitive outcome {part a), assume now that the world price of beer is $3 per case and there is free trade in beer. The government imposes an import quota of It} million cases of beer. i. EXplain why the government may want to impose a quota. {3 marks} ii. Calculate the domestic price of beer after the quota is imposed. [5 marks}