Consider a mineral that is in fixed supply, Q^S = 4. The demand for the mineral is given by Q^D = 10 - 2p, where p is the price per pound and Q^D is the quantity demanded. The government imposes a tax of $2 per pound on the consumer.
a. What is the price paid by the consumer before the tax is imposed, and in the post-tax equilibrium?
b. What is the price received by producers?
c. How much revenue is raised?