Problem
Suppose the U.S. government imposes a $1 per gallon of milk tax on dairy farmers. Using the demand and supply equations:
a. What is the effect of the tax on the supply equation? The demand equation?
b. What are the new equilibrium price and quantity?
c. How much do dairy farmers receive per gallon of milk after the tax? How much do demanders pay?
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.