Market demand and supply for cases of beer are given by Q = 875 – 5P and Q, = 20P. The equilibrium price is P= $35 per case and the equilibrium quantity is Q = 700 cases. Suppose the government...

Extracted text: Market demand and supply for cases of beer are given by Q = 875 – 5P and Q, = 20P. The equilibrium price is P= $35 per case and the equilibrium quantity is Q = 700 cases. Suppose the government decides it wants to use the beer market to raise some tax revenue. It levies a tax of $8 per case on beer consumers. Complete parts a through e below. ..... a) What is the equation of the demand curve with the tax included? Let P; be the amount producers will receive. Qq =+ OP: (Simplify your answers.) b) What is the new, after-tax equilibrium? The after-tax equilibrium price is $ and the quantity is (Round to two decimal places as needed.) c) What price do consumers now pay? $ (Round to the nearest cent as needed.) d) Who has the larger burden of the tax? Consumers pay $ more than before the tax. Firms receive $ less than before the tax. Therefore, bear the larger burden. (Round to the nearest cent as needed.) e) What is the deadweight loss due to the tax? $ (Round to the nearest cent as needed.) firms consumers