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2. (Moved from Homework #2) Consider a market that can be described by the following demand and supply curves where P is the price per

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2. (Moved from Homework #2) Consider a market that can be described by the following demand and supply curves where P is the price per unit and Q is the number of units of the good: Market Demand: Q = 100 (1f5)P Market Supply: Q = (U3)P (20.8) a. Suppose the government determines that the optimal amount of the good to be consumed in this market is 40 units. How large an excise tax will the govemment need to put on producers to reach this goal? Explain how you found your answer. b. Suppose that the government implements an excise tax in this market and it results in tax revenue equal to $4000. What was the excise tax per unit given this information and holding everything else constant? Show your work

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