Suppose that a market is described by the following supply and demand equations: QS = 2p

QD = 300 P

1. a) Solve for the equilibrium price and the equilibrium quantity.

2. b) Suppose that a tax of $3 is imposed on sellers. Solve for the new equilibrium.

3. c) Determine the incidence of the tax (i.e. what happens to the price received by sellers, the price paid by buyers and the quantity sold?).