The inverse supply function for soda is: Ps= 2 + QS The inverse demand function for soda is: PD = 16 - QD a. What are the equilibrium price and equilibrium quantity? b. What is the consumer surplus? c. What are producer profits? Question 7 (4 points) Use the supply and demand functions in Question 6. Suppose the government implements a tax that charges consumers $2 for each soda they buy. a. What are the equilibrium price and equilibrium quantity? b. What is the consumer surplus? c. What are producer profits? d. What is the deadweight loss relative to the outcome in Q6?

The inverse supply function for soda is: Ps=2+Qs The inverse demand function for soda is: P0=16Q a. What are the equilibrium price and equilibrium quantity? b. What is the consumer surplus? c. What are producer profits? Question 7 (4 points) Use the supply and demand functions in Question 6. Suppose the government implements a tax that charges consumers $2 for each soda they buy. a. What are the equilibrium price and equilibrium quantity? b. What is the consumer surplus? c. What are producer profits? d. What is the deadweight loss relative to the outcome in Q6