Suppose that an excise tax of 50¢ apiece is imposed on oranges. If the original supply and demand curves are as in Exercise,

Suppose the demand curve for oranges is given by the equation

Q = −200 • P + 1,000

With quantity (Q) measured in oranges per day and price (P) measured in dollars per orange. The supply curve is given by

Q = 800 • P

Compute the equilibrium price and quantity of oranges.

What are the equations for the new supply and demand curves? What is the new equilibrium price and quantity of oranges? What is the new post-tax price from the supplier's point of view? Illustrate your answer by drawing supply and demand curves.