Problem 3: Boulder is considering taxing alcoholic drinks to decrease consumption because of the concern about drinking and driving. Boulder estimates the supply and demand curves for a typical bar as: Demand: Q = 125 - 2.5P Supply: Q = 20P, where Q = daily sales of alcoholic drinks, and P = average price per drink. Additionally, there is a negative external cost associated with each drink = 0.10. The country has hired you to provide the following information regarding this market and the optimal tax. (e) Calculate the market quantity and price (without a tax). (b) Calculate the socially optimal quantity. (c) Calculate the optimal tax. (d) What price and quantity would prevail after the imposition of the tax? What portion of the tax would be borne by buyers and sellers respectively? (e) Calculate the tax revenue and deadweight loss from the tax. (f) 4 points extra credit: show graphically