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Suppose That a Market Is Initially in Equilibrium P=90QdP = 90 - Q ^ { d }

Question 46

Multiple Choice

Suppose that a market is initially in equilibrium. The initial demand curve is P=90QdP = 90 - Q ^ { d } . The initial supply curve is P=2Q5P = 2 Q ^ { 5 } . Suppose that the government imposes a $3 tax on this market. How much of this $3 is paid for by producers?


A) $0.
B) $1.
C) $1.50.
D) $2.

Correct Answer:

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