Suppose there are 10,000 acres of land in Davis, and the city size is fixed (the citizens have passed a "no-growth" ordinance). The demand for land in the city is described by Rent=40,000-2Q, where Q is the number of acres rented and Rent is the annual rental per acre in $

a)The city proposes and annual parcel tax of $10,000 per acre on land owners to raise revenue. Calculate the new level of consumer surplus, and producer surplus.

(Hint: The land market is a perfectly competitive market.)