PROBLEM #1 The supply and demand equations for dine-in restaurant meals in a local municipality are represented by the following equations: Demand: 0.; = 4,080 TOP Supply: Q, = 1,920 + 201' where P is the price per meal, and Q is the quantity of meals per day. Find the equilibrium price and quantity in this market. Now find the elasticities of supply and demand. Is supply elastic, inelastic, or unit elastic? Is demand elastic, inelastic, or unit elastic? The local government establishes a tax of $2.00 per meal. The tax will be sent to the government by the restaurants. Determine the new effective price consumers will now have to pay per meal. Find the net price that restaurants will receive per meal, after they have paid their tax obligation to the government. Calculate the percentage burden of the tax that consumers and producers will bear. Briey explain how the elasticities of demand and supply you computed are consistent with the tax burdens you identied