Question 03 Consider two different linear demand curves, A and B, passing through the same equilibrium point e1 = (Q1.pi) = (30,40):p^(Q) = 100 - 2Q and p"(Q) = 70 - Q. Assume that the price increases to p2 = 60. This price increase reduces the consumer surplus by... (a) $400 for demand A (b) approximately 50% for demand A (c) $450 for demand B (d) approximately 89% for demand BQuestion 06 As in question 03, consider two different linear demand curves, A and B, passing through the same equilibrium point e, = (Q1.p.) = (30,40): p*(Q) = 100 - 2Q and p" (Q) = 70 -Q. As in Solved Problem 9.4, consider a horizontal supply curve passing through point e1- Assume the government imposes a tax of $10 dollars on sellers and consider the welfare changes that follow. Which of the following alternatives is correct? (a) For demand A, the tax decreases consumer surplus by $250 (b) For demand B, the tax decreases consumer surplus by $275 (c) For demand A, the tax generates a deadweight loss of $25 (d) For demand B, the tax generates a deadweight loss of $25Question (I? Consider the same information in question 06. But nowI assume that the supplv curve is given by p = l + Q and that the government is imposing a higher tax on sellers equal to 513 per unit. Which of the following alternatives is correct? {a} The reduction in consumer surplus is larger for demand A than for demand B {b} The reduction in consumer surplus is larger for demand B than for demand A {cl The reduction in consumer surplus is the same for demands A and B {d} The revenue generated by this tax is the same for demands A and B