So, please help me to solve the question 2. Thank you.

Page 0. The demand curve of the good in question is downward sloping. Assume that firms behave competitively. 1. If at the competitive equilibrium firms produce a positive and finite amount, what are the firm's profits? (10 pts.) 2. Suppose we impose a proportional tax on the firm's sales that the firm pays. The firm is required to pay as taxes a percentage 100 x t of the dollar price of every unit it produces - where t is the tax rate. How does the competitive equilibrium price change in response to the tax? How do the firm's profits change? (10 pts.) 3. How is the tax burden been distributed between consumers and producers? Why? (10 pts.) Exercise 3 - 40 pts