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Suppose demand and suppy are given

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Suppose demand and suppy are given: Qd=7-0.5Px and Qs=0.25Px-0.5;A.) Determine the equilibrium price and quantity and the show graphically;B.) suppose a $6 excise tax is imposed on the good. Determine the new equalibrium price and quantity.;C.) How much tax revenue does the government earn with the $6 tax?

 

Paper#28935 | Written in 18-Jul-2015

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