You are given the following information about the market for bags:
P = (Q+1)/2
P = 11-Q
(P: $; Q: bags)
a. Find the equilibrium price and quantity of bags in this market.
b. Calculate market equilibrium price and quantity.
c. Suppose that the government decides to impose an excise tax of $0.5/unit on producers in this market. Find tax burden on buyers and sellers.
d. Demonstrate your answers with graphs.