Suppose that the demand for new flat screen computer monitors is given by Q = 800 − 5P and the long-run supply of the monitors is Q = 4P − 280

a)What is the equilibrium price and quantity of the monitors?

b)What are the producer surplus and consumer surplus in the market?

c)Suppose the government comes in and institutes a tax of $36 per monitor. What is the new consumer price paid and the new producer price received?

d)How much of the tax do the consumers pay and how much do producers pay?

e)Graph the tax situation labeling all key points and areas.

f)What is the tax revenue?

g)What is the dead weight loss?