Question: Suppose a competitive market has the following demand function and supply function: Qd = 200 - 2P Qs = 20 + 3P a) Determine the

Suppose a competitive market has the following demand function and supply function:

Qd = 200 - 2P
Qs = 20 + 3P

a) Determine the equilibrium price and quantity in this market.

b) Suppose the government imposes a per-unit tax of $4 on producers. Determine the new equilibrium price and quantity, the amount of tax revenue collected by the government, and the deadweight loss of the tax.

c) Suppose instead that the government imposes a lump-sum tax of $400 on producers. Determine the new equilibrium price and quantity, the amount of tax revenue collected by the government, and the deadweight loss of the tax.

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