Suppose that the annual market demand for new cars in New South Wales is given...

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Suppose that the annual market demand for new cars in New South Wales is given by

P = 80,000 – Q,

and the supply is given by

P = 20,000 + 0.5Q.

If the government imposes $15,000 per car stamp duty (tax), paid by sellers, what will be the government revenue and deadweight loss associated with the tax?

 $450,000,000 and  $75,000,000

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$75,000,000  and $450,000,000 

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$15,000, and $10,000

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$15,000 and $5,000

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