The market for Blu-ray movies is perfectly competitive, with the market supply curve given by P = 5 + Q and the market demand curve given

by P = 65 - 2Q.

1.) Find the equilibrium price and quantity, and calculate the resulting consumer surplus and producer surplus.

2.) If the government implements a tax of $6 on Blu-ray movies, what will be the new market quantity and the new prices paid by consumers and received by producers (net of the tax)?

3.) Calculate the tax revenue and deadweight loss generated by the tax, and explain what the deadweight loss represents (i.e., what does this number mean?).

4.) Based on your analysis from the previous parts of this problem, who would you expect to be most strongly opposed to this tax (as a group): consumers or producers? Clearly explain how your previous results led you to this conclusion.