The Demand Curve for bullets used in handguns is given by the equation Q_D= 19.2 - 6P with quantity measured in billions of bullet packages per year and price measured in dollars per bullet package. The Supply Curve is estimated by the equation Q_S= -4.5 + 7.5P.

equilibrium price of bullet packages = 1.76

equilibrium quantity = 8.67

amount [in billions] consumers spend on the product = 15.21

Consumers' Surplus = 6.26

Producers' Surplus = 5.01

A. After the 18% tax on Producers is imposed and the market settles into equilibrium, what is the amount of revenue the industry collects?

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B. After the 18% tax on Producers is imposed, what is Consumers' Surplus?

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C.After the 18% tax on Producers is imposed, what is the Producers' Surplus?

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D.After the 18% tax on Producers is imposed, what is the Government Tax Revenue?

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E. After the 18% tax on Producers is imposed, what is the Deadweight or Welfare Loss to the economy?

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