the market for Lyft services in a city is represented by the following supply and demand equations:

Q_S =5P and Q_D = 90 - P,

where P is average price per ride in dollars and Q is the number of rides in millions.

a.Find the dollar value of the consumer surplus and the dollar value of the producer surplus at the equilibrium point. Show your work. Make sure that you indicate the dollar values for your numerical answers, whether in millions or something else. (Hint: It helps if you draw a graph first, and then work out the mathematics.)

b.If the government sets a price ceiling that is $5 below the (equilibrium) market price, what is the cost of this regulation as measured by the deadweight loss? How much is transferred from the producer surplus to the consumer surplus. Show your work.Make sure that you indicate the dollar values for your numerical answer. (Hint: Again, you should draw a graph to help you with finding the answer.)

c.If an excise tax of $2 per unit is imposed, with the result that the supply curve is shifted to the left by a vertical distance of $2, find the total revenue generated by the government from the tax. (Hint: To the supply curve you add $2. The revenue per unit for the government is the difference between what buyers pay and what suppliers receive).