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2. Suppose the market for laser pointers consists of 2 types of people. One group of consumers has an individual demand of gprof 13-1P and the other groups has an individual demand of gCal-20- (a) [4 marksl If there are 30 consumers with a demand of (gprof and 8 consumers with a demand of gcat: then what is the (inverse) market demand curve P(Q) 38 people)? Illustrate it in a graph. (b) [5 marksj Suppose the (inverse) market supply curve is P what is the market equilibrium outcome? (Hint: Both groups buy laser pointers and your quantity should be somewhere between 425 and 525.) What is the consumer and producer surplus in this case? (Reminder: Your consumer surplus will be ugly to calculate since the demand curve is discontinuous).

(c 6 marks The government has become concerned about long term environmental harm from improper disposal of the laser pointers. To alleviate some of the burden, the government decides to impose a $11 excise tax on each laser pointer sold. What is the new equilibrum? How much has the government raised in tax revenue? How big is the dead weight loss? What is the tax incidence for the consumers?

please help me! thanks

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2 48 2 32- 16 IO0 eoDate: Page No We uwibrium 2 ー-1895t 11,535 13.20 ro た11 loo 100 0

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