The supply and demand curves for corn are as follows:

QD= 3,750 - 725P

QS= 920 + 690P,

where Q = millions of bushels and P = price per bushel.

a) Calculate the equilibrium price (Po) and quantity (Qo) that would prevail in the free market.

b) What is the point price elasticity of supply (Es) and demand (Ed) at the equilibrium price and quantity?

c) If the government imposes a $2.50 per bushel support price, how much corn (Qg) will the government purchase?

d) Calculate the loss in consumer surplus that would occur under the support program.

e) Suppose instead of the price support, the government is considering a tax of $0.50 to be collected by producers.What proportion of the tax will be paid by producers? Note: please record your answer to 2 decimal places (i.e.: 0.31 instead of 31%).

Please show your calculations