Suppose that in mobile telephony market is given by supply and demand functions represented by following functions:Q=3002p andQ=180+2p Suppose that a tax is applied to telephone service companies and networks so that new supply function:

Q=200+2p.

Calculate what will be new equilibrium point, how much is producer's tax revenue, pass-through of tax to consumers, irrecoverable loss of efficiency and new consumer and producer surpluses. Graph your results