Suppose that in the market for soda beverages demand is QD=90-20P and supply is QS=30P-10. The local government is considering the introduction of a $1 per bottle tax on soda.

Using the calculus based comparative statics formulas, evaluate how the new tax would affect the gross price (buyer price)

and the net price (seller price) of soda.

In your diagram, illustrate the effect of the soda tax on the supply curve, on the equilibrium price, and on the

equilibrium quantity.