Essay
The market demand and supply functions for toothpaste are: 
and 
Calculate the equilibrium quantity and price and point elasticity of demand in equilibrium. Next, calculate consumer surplus. Suppose the toothpaste market is taxed $0.25 per unit. Calculate the revenues generated by the tax. Calculate the loss in consumer surplus. What percentage of the burden of the tax is paid for by consumers?
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First we must determine the market equil...View Answer
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