Question 2: In a perfectly competitive market, the demand curve is given as: Q=100-5P, the supply curve is given as Q=3 P-12. (30%) I. Compute the total social surplus of this market. II. If the government impose a tax on the producers, and the tax rate is $2 per unit produced. Graphically show the tax revenue and the deadweight loss (DWI). III. Compute the new producer surplus and the DWL. IV. Instead of taxing the producers, if the government impose the same tax {$2 per unit) on the consumers, graphically show the change in the market equilibrium and the DWL V. Does it really matter whether the tax is imposed on consumers or the producers? Question 3: In a perfectly competitive market, the demand curve is given as: Q=100-4P, the supply curve is given as Q=2P-8. (20%) I. Compute the total social surplus. II. If the producers are now receiving a $4 per unit subsidy, graphically show the DWI of this market. III. Report the new social surplus with this subsidy