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Suppose demand and supply are given by

Qxd =7- 1/2Px and
Qxs =1/4Px-1/2

• Determine the equilibrium price and quantity
• Suppose a $6 excise tax is imposed on the good. Determine the new equilibrium price and quantity
• How much tax revenue does the government earn with $6 tax.

Microeconomics, Economics

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  • Reference No.:- M941910
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