Suppose a steel producer has a marginal cost of: MC = 100+0.5Q

Suppose the demand for steel can be represented by: MB = 550 - Q

a)- Find the market equilibrium levels of quantity and price for steel, consumer surplus, producer surplus, and

social surplus, and show it on your graph

b)- Suppose government imposes a tax of $112.5 per unit of steel to the steel factory to collect revenue. Find the

equilibrium levels of quantity and price for steel, consumer surplus, producer surplus, and social surplus. Is there

any Dead Weight Loss (DWL= reduction in social surplus due to the policy, so compare social surplus after and

before the policy)? Comment. [Hint: Per unit tax shifts MC curve up by the amount of tax)].

c)- Draw a complete and well-marked graph to show all the areas, lines, and values, in parts (a) and (b). Just sketch the graphs

Suppose a steel producer has a marginal cost of: MC = 100+0.5Q Suppose the demand for steel can be represented by: MB = 550 Q a)- Find the market equilibrimn levels of quantity and price for steel, consumer surplus, producer surplus, and social surplus, and show it on your graph b)- Suppose government imposes a tax of $1 12.5 per unit of steel to the steel factory to collect revenue. Find the equilibrium levels of quantity and price for steel, consumer surplus, producer surplus, and social surplus. Is there any Dead Weight Loss CDWL= reduction in social surplus due to the policy, so compare social surplus aer and before the policy)? Comment. [I-Iint: Per unit tax shifts MC curve up by the amount of tax)]. c)- Draw a complete and well-marked graph to show all the areas, lines, and values, in parts (a) and (b). Just sketch the graphs, they don't need to be precise