a)What is an excise tax. Suppose an excise tax of $2 is imposed on Good X. Explain how this excise t

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a)What is an excise tax. Suppose an excise tax of $2 is imposed on Good X. Explain how this excise tax will affect the market for Pizza.b)What is an “ad valorem†tax? Suppose an ad valorem tax of 3 percent is imposed on good X.c)C) A technological change reduces the cost of producing additional units of good X.Question 2The question below is about market equilibrium and how to compute equilibrium values. Suppose demand and supply are given by Qd = 92-2P and Qs = -16+P.What are the equilibrium quantity and price in this market? Show your work?Hint:Draw the demand and supply graph and label all initial points ( D0, S0, P0, E0), following the use of comparative statics given your text on pages 62-65)Set demand equal to Supply and solve the values. See page 62 for a practice problemNext, insert the values in the graph.