The government is worried that too many cars are being sold and this is leading to a global climate crisis. They are considering two different policies to reduce the sale of new cars. 3. (5 marks) The first policy is to introduce a price floor on new cars equal to $16,000. Under this policy, determine the new price of cars, and the quantity of cars sold. 4. (5 marks) The alternative policy is to introduce a tax of $3,000 on the sale of new cars. Under this policy, determine the price paid by consumers, the price received by firms, and the number of new cars sold. Finally, determine what share of the tax is paid for my consumers and what share is paid for by firms. Remember that we can simulate a tax by shifting the supply curve vertically by the amount of the tax. 5. (5 marks) Considering the goal of the government, which of these two policies is a better one? Which one would firms prefer? Justify both of your answers