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Assume a perfectly competitive industry. The demand curve is QD = 93 − 3P and the...

Assume a perfectly competitive industry. The demand curve is QD = 93 − 3P and the supply curve is QS = -2 + 2P

a) Find producer and consumer surplus.

Suppose that a tax of $20 per unit is imposed on firms.

b) Find the burden of the tax on consumers

c) Find the burden of tax on firms

d) Find any deadweight loss.

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