Question 2 (20 points) Consider the market for gold. Suppose that the demand for gold per gram is given by Qp = 20 0.2P, and the supply of gold per gram is given by Qs = 0.05P. Suppose also that there is a tax on gold consumers of $25 per gram. (@) What is the equilibrium price and quantity in the market for gold both without and with the tax? Remember that the tax is added to the price, not the quantity. (b) Please draw these demand and supply curves in a diagram, including the demand curve with the tax. Don't worry about making the lines perfect, but please try and keep it roughly to scale. Please label all curves and axes, the original and new equilibrium prices and quan- tities, and the consumer and producer prices with the tax. (c) What proportion of the economic burden of the tax is borne by the producer and the consumer? (d) Please calculate the amount of government revenue collected and the amount of dead- weight loss, and outline and label these areas in your diagram. Question 3 (15 points) The standard textbook model of tax incidence says that it is irrelevant upon which side of the market the statutory tax burden falls. In practice, almost all taxes are remitted by firms rather than individuals. Keeping your answer to two sentences or less, please provide and explain two reasons why this might be the case. Think about what features the standard view might be missing, remembering the readings and our discussion in class