(Q1, Suppose that a market is described by the following supply and demand equations: QS=2P QD=300 - P a) Solve for the equilibrium price and the equilibrium quantity. b) Suppose that a tax of T is placed on buyers, so the new demand equation is QD=300 - (P+T). Solve for the new equilibrium. What happens to the price received by sellers, the price paid by buyers, and the quantity sold? c) Tax revenue is T Q. Use your answer to part (b) to solve for tax revenue as a function of T. Graph this relationship for T between 0 and 300. d) The deadweight loss of a tax is the area of the triangle between the supply and demand curves. Recalling that the area of a triangle is 12 base height, solve for deadweight loss as a function of T. Graph this relationship for T between 0 and 300. (Hint: Looking sideways, the base of the deadweight loss triangle is T, and the height is the difference between the quantity sold with the tax and the quantity sold without the tax.) e) The government now levies a tax on this good of $200 per unit. Is this a good policy? Why or why not? Can you propose a better policy?) (Q2, Suppose the federal government requires beer drinkers to pay a $2 tax on each case of beerpurchased. (In fact, both the federal and stategovernments impose beer taxes of some sort.) a) Draw a supply-and-demand diagram of themarket for beer without the tax. Show the price paid by consumers, the price receivedby producers, and the quantity of beer sold. What is the difference between the pricepaid by consumers and the price received byproducers? b) Now draw a supply-and-demand diagramfor the beer market with the tax. Show theprice paid by consumers, the price receivedby producers, and the quantity of beer sold. What is the difference between the pricepaid by consumers and the price receivedby producers? Has the quantity of beer sold increased or decreased?) (Q3, Suppose the price elasticity of demand for heating oil is 0.2 in the short run and 0.7 in the long run. a) if the price of heating oil rises from $1.80 to $2.20 per gallon, what happens to the quantity of heating oil demanded in the short run? In the long run? (Use the midpoint method in your calculations.) b) Why might this elasticity depend on the time horizon?) (Q4, Market research has revealed the following information about the market for chocolate bars: The demand schedule can be represented by the equation QD = 1,600 - 300P, where QD is the quantity demanded and P is the price. The sup-ply schedule can be represented by the equation QS = 1,400 + 700P, where QS is the quantity sup-plied. Calculate the equilibrium price and quan-tity in the market for chocolate bars.)