Suppose that a market is described by the following supply and demand equations: Supply: QS = 0.5*P (or equivalently, P = 2QS) Demand: QD = 300-P (or equivalently, P = 300 - QD)

a. Solve for the equilibrium price and the equilibrium quantity. b. Suppose that a tax of $30 is placed on sellers. Solve for the new equilibrium. What happens to the price received by sellers, the price paid by buyers, and the quantity sold? c. The deadweight loss of a tax is the area of the triangle between the supply and demand curves. Solve for deadweight loss. (Recall that the area of a triangle equals 1/2 x base x height.)