Problem
Suppose the demand curve for a good is given by the equation P = 200 - 1/4 Q and the supply curve is given by the equation P = 50 + 1/2 Q, where P represents the price of the good (measured in dollars per unit) and Q represents the quantity of the good.
(i) Suppose the government imposes a sales tax of $9 per unit on this good. Find the new formula for the demand curve, the change in equilibrium quantity, the post-tax price received by suppliers, and the post-tax price paid by buyers. Illustrate graphically as well.
(ii) Suppose quantity demanded for the good rises by 10 units at every possible price while at the same time quantity supplied rises by 5 units at every possible price. Find the new equilibrium price and quantity in this market.
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.