The following demand and supply curves describe the market for cameras in Japan, assuming that the market is perfectly competitive.

Supply: P = 40 + Q

Demand: P = 240 -3Q.

Part IV: Understand Tax Analysis (2 * 5 = 10)

The following demand and supply curves describe the market for cameras in Japan, assuming that the market is perfectly competitive.

Supply: P = 40 + Q

Demand: P = 240 -3Q.

a) What will the equilibrium price and quantity of cameras be?

b) Calculate the producer and consumer surplus associated with the equilibrium found in part (a).

Illustrate on a graph.

c) Suppose the government levies a tax of $10 per camera sold and imposes the legal tax incidence on producers. What is the new quantity of cameras sold? What price do consumers pay? What price do producers receive? Illustrate on a graph.

d) Find the new producer and consumer surplus associated with your answer to part (c).

e) How much revenue does the government raise from the tax?