Q5. (2 points) Nash equilibrium, competition, taxes and subsidies. Assume that there are many, many firms that sell mobile phones, and assume that the firms' products are perfect substitutes, so that the supply of mobile phones can be characterized as perfect competition. Potential buyers are homogenous in their valuation for mobile phones and each potential buyer consumes at most 1 mobile phone ("homogenous" means that the consumers are similar to one another). Suppose that there are 2000 potential buyers and each potential buyer's willingness to pay for a mobile phone is 700. Assume that every firm's total cost curve is given by TO(q) = 300q, where q is the amount produced by the firm. a) (1 point) Solve for the Nash Equilibrium price. (Please solve for the equilibrium using informal reasoning; please do not draw a payoff matrix). b) (1 point) Now assume that the government imposes a 200 dollar tax on every mobile phone sale. (Every time a phone is sold, the firm selling the phone must pay government 200 dollars). What is the impact of this tax on consumer well-being