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1. A cash-starved town decides to impose a $6 excise tax on T-shirt producers per shirt sold. The following table shows the quantity demanded and
1. A cash-starved town decides to impose a $6 excise tax on T-shirt producers per shirt sold. The following table shows the quantity demanded and the quantity supplied at various prices. Price Quantity Demanded Quantity Supplied $19 0 60 $16 10 50 $13 20 40 $10 30 30 $7 40 20 $4 a0 10 $1 60 0 (a) Plot the market with a supply/demand diagram. (b) What are the equilibrium quantity demanded and the quantity supplied before the tax is implemented? Determine the consumer and producer surplus before the tax. (c) What are the equilibrium quantity demanded and quantity supplied after the tax is implemented? Determine the consumer and producer surplus after the tax. (d) How much tax revenue does the town generate from the tax
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