The right answer is highlighted just need to understand how to get to the right answer

1 7-10. The market for widgets has the following supply and demand curves: Supply: P = 20 + 0.025Q Demand: P = 100 - 0.075Q Initially, the market is in equilibrium at P = $40, Q = 800. Questions 7 to 10 concern this market. 7. The government places a $20 per unit tax on the buyers of widgets. At the new equilibrium, the price received by sellers will be: A) $20 B) $25 C) $30 D) $32.50 B) $35 F) $37.50 G) $38 H) $55 I) $40 J) none of the abov e 8. Consider again the same $20 per unit tax on the buyers of widgets. At the new equilibrium, the price paid by buyers (including the tax paid) will be: A) $35 B) $37.50 C) $40 D) $42.50 E) $45 F) $47.50 G) $50 H) $55 1) $60 J) none of the above 9. How much is the excess burden due to the tax? A) $400 B) $600 C) $800 D) $1000 E) $1200 F) $180 0 G) $2000 H) $2400 1) $4000 J) none of the above 10. How much would the excess burden of this $20 tax be if the equation of the original supply curve had been: Supply: P = 0.025Q A) $400 B) $600 C) $800 D) $1000 E) $1200 F) $180 0 G) $2000 H) $2400 1) $4000 J) none of the abov e