The demand curve for salted codfish is D(P) = 2005P and the supply curve S(P) = 5P.

(a) On the graph below, use blue ink to draw the demand curve and the supply curve. The equilibrium market price is ..... and the equilibrium

quantity sold is ....

(b) A quantity tax of $2 per unit sold is placed on salted codfish. Use red ink to draw the new supply curve, where the price on the vertical axis remains the price per unit paid by demanders. The new equilibrium price paid by the demanders will be ..... and the new price received by the

suppliers will be ....... . The equilibrium quantity sold will be ..........

The deadweight loss due to this tax will be .......... On your graph, shade in the area that represents the deadweight loss.