Suppose Qd = 500 - 4P and

Qs = 6P

a.[5 marks]Find Equilibrium P and Q.

b.[10 marks]Now if the government imposes a tax of $2 per unit (T=2), find the price that buyers will pay and the price that sellers will receive and the quantity that will be exchanged in the market. Show all the steps with explanation to receive full marks. Hint: Modify the equations as follows:

Qd = 500 - 4PB

Qs = 6Ps

If the tax is paid by buyer P_B= Ps +T

c.[5 marks]What is the burden of consumers? What is the burden of producers? What is the amount of total tax paid?