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Question 3 14 pts m ine that the government impossa per unit tax of S2. Which of the following are the equilibrium price paid


People Quizzes odules laborations ale Drive Question 2 18 pts er Registration nic Integrity ope Consider the market character
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Answer #1

Ans) the correct option is d) 15 and 20

At equilibrium, demand = supply

50 - 2P = 2P - 10 implies P = 15 and Q = 20

Ans) the correct option is c) 14 and 16 and 18

New demand Q = 50 - 2(P + 2)

= 46 - 2P implies Pc = 14

Ps = 16 and new quantity = 18

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