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3. Consider a perfectly elastic supply curve at p* = 33, and a perfectly inelastic demand curve at (1* = 1,056. Suppose a tax of

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3. Consider a perfectly elastic supply curve at p* = 33, and a perfectly inelastic demand curve at (1* = 1,056. Suppose a tax of $1 per unit is imposed on consumers. Show your work. (a) What is the Producer Surplus under the tax? (5%) (b) What is the Consumer Surplus under the tax? ( 5% ) (c) What is the Deadweight Loss under the tax? (5%) (d) What is the government's tax revenue? ( 5% ) (e) How much of the tax do producers pay? (5%)

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