Question #5 (15 points) Tax Problem: Suppose the demand curve for a good is given by QD = 10 - 2P and the supply curve is given by QS = -2 + P. a) (4 points) Find the equilibrium price and quantity in the absence of any government intervention. b) (6 points) Now suppose the government imposes a tax of t = 1.5. Find the new equilibrium price at which the good is sold in the market and the quantity of the good sold. What is the net price (net of taxes) that sellers receive? 0) (5 points) How much of the burden of the tax is borne by the buyers and how much is borne by the sellers? Why is the burden of the tax asymmetric? (In the sense that one party bears more of the burden)