The Senate committee is working on tax reform for telecommunications services in the USA. After deregulation, the telecom market has become very competitive and the high telecom tax rate (25%) reduces...

The Senate committee is working on tax reform for telecommunications services in the USA. After deregulation, the telecom market has become very competitive and the high telecom tax rate (25%) reduces business growth. Estimates indicate that the current monthly demand for telecom services is given by Q^d=300-4P and the market supply is Q^s=3P-120P (both in millions), where P is the monthly price of telecom services. The Commission plans tax reform that would cut a tax rate to 15%, leading to a new supply function Q^s=4P-60.

How much will the customer save on average during a month as a result of the proposed legislation?

How will tax revenues change?