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Question: 3 the demand and supply for wine are given by...

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3. The demand and supply for wine are given by Q-20-P and Q-3P, respectively. P is the dollar price of wine per bottle, and Q is the number of bottles (unit: thousand bottles). (1) What is the equilibrium price and quantity? (2) Suppose now the government imposes a per-unit tax of $4 on the sellers. Solve for the nevw equilibrium price and quantity, the price sellers received, and the price consumers paid. (3) Calculate the government tax revenue. (4) What fraction of the tax is passed onto consumers? What fraction of the tax is actually paid by sellers? (5) If the $4 tax is collected from consumers, repeat questions (2)-(4). How do your answers to 3-4 change?

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