The market supply curve is given by Qs = -10+2P. The demand curve is given by Qd = 30 - 3P.

(a) [8 points] What is the equilibrium quantity and price? What is the producer surplus in the market?

(b) [12 points] After the government imposes a tax on output as $ 5 per unit of output, what would be the new supply curve? What is the new equilibrium price and quantity? What is the new producer surplus? Do they increase or decrease?