Suppose there are 10,000 acres of land in Riverside, 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 $.

1. a)Show above the demand and supply of city land at each rental (with the values at which curves intersect axes). Calculate the market rental rate, consumer surplus, and producer surplus.
2. b)The city proposes and annual parcel tax of $10,000 per acre on land owners to raise revenue. Calculate the new level of land rents, consumer surplus, and producer surplus.

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