7.8 please explain. the question 7.7 is provided in the screenshot as well 7.7. Sales tax.Consider an industry with market demandQ = 550-20p and market supply Q = 100+10 p. Determine theequilibrium price and quantity. Suppose the government imposes atax of $6 per unit to be paid by consumers. What is the impact onequilibrium price and quantity? What if the sales tax is paid by theseller instead of the buyer?17.8. Sales tax with steeper demand. Consider again Exercise 7.7.Suppose that demand is instead given by Q = 280-2 p.(a) Show that the equilibrium levels of p and q are the sameas in the initial equilibrium of Exercise 7.7.(b) Determine the impact of a $6 sales tax in terms of the priceeffectively paid by buyers and sellers.7.3. PRICE CONTROLS315(c) Compare the results in (b) to those in Exercise 7.7. Explainthe economic intuition.

When the quantity requested (the amount of the product that consumers want to purchase) and the…

7.7. Sales tax. Consider an industry with market demand 550-20 p and market supply Q = 100+10 p. Determine the quilibrium price and quantity. Suppose the government imposes a x of $6 per unit to be paid by consumers. What is the impact on quilibrium price and quantity? What if the sales tax is paid by the eller instead of the buyer?