Considermarketforagoodcharacterizedbythefollowinginverse demand and supply functions: PX = 10 − 2QX and PX = 2 + 2QX. a. Compute the surplus received by consumers and producers. b. Now suppose all manufacturers of this good are to pay a lump tax of $0.10 that will be used by the government regulators to defray some of the environmental cost imposed by this good’s production. What will be the new surplus received by consumers and producers? c. Based on your results in part ‘b’ above, how will you evaluate the impact of this tax policy on the society? Explain

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