Question 5 King Kanuta rules a small tropical island, N utting Atoll, whose primary crop is coconuts. If the price of coconuts is p, then King Kanuta's subjects will demand D(p) : 1200 100p coconuts per week for their own use. The number of coconuts that will be supplied per week by the island's coconut growers is 5(3)) 2 100p Question 5 Part a 1'What are equilibrium price and quantity levels? Question 5 Part b One day, King Kanuta decided to tax his subjects in order to collect coconuts for the Royal Larder. The king required that every subject. who consumed a coconut would have to pay a coconut to the king as a tax. Thus, if a subject. wanted 1 coconut for himself, he would have to purchase 2 coconuts and give 1 to the king. What would the equilibrium price and quantity produced be now? Question 5 Part c King Kanuta's sub jects resented paying extra coconuts to the king, and whispers of revolution spread through the palace. W'orried by the hostile atmosphere, the king change coconut tax. Now, the shopkeepers who sold the coconuts would be responsible for paying the tax. For every coconut sold to a consumer, the shopkeeper would have to pay one coconut to the king. W'ould this new tax calm down sub jects