Essay
Suppose the market for grass seed can be expressed as
Demand: QD = 100 - 2p
Supply: QS = 3p
If government imposes a $5 specific tax to be collected from sellers,what is the price consumers will pay? How much tax revenue is collected? What fraction is paid by sellers?
Correct Answer:
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At equilibrium without the tax,p = 20 an...View Answer
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Correct Answer:
Verified
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