Question: 5. Consider the partial equilibrium model in matrix form Ar = d where A is the matrix of coefficients, x is the vector of unknowns

5. Consider the partial equilibrium model in matrix form Ar = d where A is the matrix of coefficients, x is the vector of unknowns and d is a vector of constants: Qd 10 - t Qs t is a unit tax that the consumers must pay to the government. NO a) Represent this model in a system of 3 linear equations. (2 pts) b) Use the system to solve for the unknowns (find the solutions in constant terms and t). Show your work. (2 pts) c) Represent the supply and demand graphically when t = 0 and when t = 5 (make sure to indicate which is which). Put price on the vertical axis and quantity on the horizontal axis. Show all relevant quantity on your axes, indicate the market equilibria. Describe the impact of the tax on the equilibrium. (4 pts)
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