Incidence of Taxation Problem

Assuming the following Supply and Demand Functions:

Qs = -8 +6P
Qd = 37 3P
Find:
1. Create a Supply and Demand schedule for prices $0, $1, $3, $5, $7, $9
2. Plot each of the points on a graph.
3. Find and show market equilibrium Price and Quantity.
4. A specific tax of $2 per good. Write the new Supply function and plot the
curve labeling it S + Tax.
5. Find and show the new market equilibrium Price and Quantity.
6. Show and identify the change in Producer Surplus, Consumer Surplus, Total
Welfare Loss and the area of the tax.
7. Calculate the amount of tax paid by the Consumers and the Producers.
8. Calculate the Total Revenue earned by Producers
a. Before the tax.
b. After the tax.