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5. Suppose that cigarettes are forbidden in market \"AM so people have to trade :cigarettes in a black market. The cigarette demand follows Q11 = 12 - P, and the icigarette supply follows (315 = 2P. (1} Find the equilibrium price and quantity In the black market. - (2} The government becomes aware of the black market and reinforces the police so that half of the cigarette supply would be destroyed. Under this circumstance what are the new demand and supply functions? And find the new equilibrium price and quantity? = (3} What happens to the consumer surplus change from (1} and (2}? (4} Suppose that the government legalizes cigarette trading; however for every: unit of the cigarettes bought the buyer has to pay tax T to the government T is equal to the pre-tax price P. And in this scenario the government would NOT destroy cigarette supply. What are the demand and supply functions under this circumstance? What Is the equilibrium (pre-tax} price and quantity7 What Is the after-tax price paid by buyers? 7. The monopolist faces a demand curve given by Q 100- 2p. its cost functIon Is C= 20!. What Is its optimal level of output and price? =