Problem Solving. Given the demand equation for chocolate bars Q = 1,600 – 30OP and the supply equation for chocolate bars Q = 1,400 +700P, Show your solutions. (adapted from Mankiw, 2008) a) Calculate the equilibrium price and quantity in the market for chocolate bars. b) Calculate the price elasticity of demand at the equilibrium price and quantity (using point elasticity formula). c) Calculate the price elasticity of supply at the equilibrium price and quantity. d) If a per unit sales tax is imposed on this market, who will pay a larger share of the tax and why?

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