Assume that the demand curve for sporting guns is described by Q^D =100 − 2 p and the supply is described by Q^S =−20+ p (Q^D & Q^S are in millions, p is in $) 

a. Compute the competitive equilibrium price and quantity. Draw a graph of supply and demand curve and label it correctly. Compute the total value created in the market for sporting guns. 

b. Suppose that the government views sporting guns as a luxury product and taxes the consumers $6 for each sporting gun they buy. Solve the new competitive equilibrium. What losses do consumers of sporting guns incur as a result of the tax? What losses, if any, do the producers of sporting guns incur?