1. Use the following equations for demand and supply to solve for market equilibrium price and quantity:
Demand: Qd = 100 – 4P
Supply: Qs = 10 + 6P
2. Using the diagram below, answer the following questions:
a. How much is the per-unit tax on cigarettes?
b. What price do consumers pay after the tax?
c. How much tax revenue is collected?
d. What is the amount of deadweight loss?
Demand: Qd = 100 – 4P _____ 1