Question: Question 4 - 40 marks Suppose the demand for a product is given by Op=1,000-5P, where Q, is quantity per year measured in kilogram and

Question 4 - 40 marks Suppose the demand for a product is given by Op=1,000-5P, where Q, is quantity per year measured in kilogram and P is price in AUD per kilogram. The supply curve for this product is given by Q:=4P-80. a. Determine the equilibrium price? What is consumer surplus and producer surplus at this equilibrium? (20 marks) b. What would the market price be if the government impose 10% tax on each kilogram sold. What would be the price that consumer pay and the producer receive after tax? (20 marks)

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