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4) Let's practice how to compute the consumer and producer surplus, in an example with taxes. Assume that we are in a perfect competitive market,

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4) Let's practice how to compute the consumer and producer surplus, in an example with taxes. Assume that we are in a perfect competitive market, with aggregate inverse demand of p(x) = 8 2x. Also, the supply curve2 is given by p = x2. a) Compute the equilibrium price and quantity (xmpo) in this market. b) In this equilibrium, how much is the consumer surplus (CS)? c) And how much is the producer surplus? C!) Now assume the government imposes a quantity tax (let's call it t) of $2.75/unit of x. Compute the new equilibrium quantity and the equilibrium prices for the demand and supply. e) What is the new consumer surplus after tax? f) What is the new producer surplus after tax? g) Compute the tax revenue and deadweight loss in this market

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