Suppose the market for cigarettes is characterized by the
Suppose the market for cigarettes is characterized by the following information:Qd = 70 – 5P [Demand] Qs = 3P – 10 [Supply][Note: P = price per unit; Qd = thousands of units demanded; Qs = thousands of units supplied]Suppose the government imposes a sales tax of $2 per unit. Answer questions (i) through (v) below:i) Calculate the magnitude of the consumer surplus and producer surplus in the pre-tax equilibrium.ii) Calculate the tax revenue in the post-tax equilibrium.iii) Calculate the change in consumer surplus due to the sales tax.iv) Calculate the change in producer surplus due to the sales tax.v) Calculate the Dead-Weight-Loss due to the sales tax.