Using the equations shown below, answer the following questions with a carefully labelled graph (without calculations). (10)

QD = a - bP

QS = c + dP

a. Draw demand and supply curves, and show the market equilibrium point.

b. Assuming a tax of T is imposed on the seller side, what is the new demand and supply curve?

c. What is the new equilibrium point?

d. Label the portion of tax that buyer pays and the portion that seller pays?

e. What is the effective price the sellers receive?

Figure 6b