The market for smart phone applications is characterized by the following demand and supply curves. QD = D(P) = 5 x P-2 Qs = S(P) = 1280 x P2 (a) Calculate the equilibrium price and quantity for this market. [2 marks] (b) The government is concerned with the amount of time that youth are on their phones and is considering introducing a per unit tax of t on each smartphone application that is purchased. Sellers of the tax are legally required to pay the tax. Using the equilibrium conditions, D(P*) = S(P* -t) = Q*, derive an equation for the effect of this tax on the equilibrium price in this market in terms of the elasticity of demand ed and the elasticity of supply es. [5 marks] (c) Suppose that the unit excise tax is set at t = 1. What is the excess burden of this tax per dollar of revenue raised? [3 marks]