The annual demand for liquor in a certain state is given by the following equation:

Qd =400,000 - 20,000P where P is the price per gallon and QD is quantity of gallons demanded per year. The supply of liquor is given by the equation: Qs = 20,000P

1. Solve for the equilibrium annual quantity and price of liquor.

Suppose that a $2-per-gallon tax is levied on the price of liquor received by sellers

1. Calculate total tax collected by government
2. Calculate the excess burden of the tax