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4. We have a market with linear demand and supply. The demand curve is P = 9 - q and the supply cum is P
4. We have a market with linear demand and supply. The demand curve is P = 9 - q and the supply cum is P =51. 9.) Determine the equilibrium output and price in this market and show it on a graph. Show your work. b) Now suppose that the government imposes a per unit tax of 1 on this good that is paid by the consumers. Show the effect of this policy on the market and determine the new equilibrium 0) Suppose instead that the government imposes the tax on the rms rather than the consumers. Show the eect of this policy on the market and determine the new equilibrium. :1) Which policy is better from the economy's point of View? Why? (20 pts)
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