Problem
Consider a market where supply and demand are given by P = 10 and P = 34 - Q respectively.
(a) Illustrate the market geometrically, and compute the equilibrium quantity.
(b) Impose a tax of $2 per unit on the good so that the supply curve is now P = 12. Calculate the new equilibrium quantity, and illustrate it in your diagram.
(c) Calculate the tax revenue generated, and also the deadweight loss.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.