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8. There is market for diamonds. The demand for diamonds per milligram is determined by Q9 = 40 0.4P while its supply is determined by Q5 : 0.1P. Suppose a tax of $20 per milligram 0d diamonds is imposed on the consumers of diamonds. (a) What is the equilibrium market price and the equilibrium quantity in the market for diamonds prior to the introduction of the tax? What is the equilibrium market price and quantity after the tax is introduced? Remember that P is the market price per unit: be careful in rearranging the demand function and in correctly incorporating the tax into it. (b) Now draw a diagram with the demand and supply curves, both before and after the tax was introduced. Label each curve and axis, the old and new equilibrium prices and quantities, and the consumer and producer prices with the tax. You have seen this kind of diagram on the textbook and in the lectures. (c) How much tax burden falls on consumers? and on producers? Write these down both in levels (i.e. in dollars) and as a proportion (Le. %). (d) Calculate the amount of government revenue collected and the amount of deadweight loss, and outline and label these areas in your diagram