The following information applies to the market for a particular item in the absence of a unit excise tax:

a. According to the information in the table, in the absence of a unit excise tax, what is the market price? What is the equilibrium quantity?
b. Suppose that the government decides to subject producers of this item to a unit excise tax equal to $2 per unit sold. What is the new market price? What is the new equilibrium quantity?
c. What portion of the tax is paid by producers? What portion of the tax is paid by consumers?

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Price (S per unit) 4 Quantity Supplied 50 75 100 125 150 175 Quantity Demanded 200 175 150 125 100 75 6 7