2. Given a demand curve P = 120 - Q and a supply curve P = .5Q answer the following questions:

1. What is the equilibrium and what is the producer and consumer surplus (PS and CS)?
2. If a 15 dollar producer tax is introdu ed (P = .5Q + 15) caulculate the following:

a) Tax per unit b) Total tax revenue c) Total amount of tax paid by consumers d) Total amount of tax paid by producers

e) Total expenditures

Total revenue for firms