Taxes can be levied on consumers or producers. a. Demonstrate the effect of a $4 per-unit tax
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Taxes can be levied on consumers or producers.
a. Demonstrate the effect of a $4 per-unit tax on suppliers on equilibrium price and quantity.
b. Demonstrate the effect of a $4 per-unit tax on consumers on equilibrium price and quantity.
c. How does the impact on equilibrium prices (paid by consumers and received by producers) and quantity differ between a and b?
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