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A competitive market with the demand and supply curves below is in equilibrium: Q = 110 - 0.5p = p = 220 - 2Q, QS
A competitive market with the demand and supply curves below is in equilibrium: Q = 110 - 0.5p = p = 220 - 2Q, QS = 2p - 40 pS = 20 + 0.5Q If the government imposes a tax of $25 per unit on the producers, the quantity of equilibrium after the tax, the price paid by consumers, the tax revenue, and the deadweight loss associated with this tax will be: Qt = 90, pt = 40, R = 2,250, and DWL = 250 at = 80, pt = 60, R = 2,000, and DWL = 0 Qt = 80, pt = 70, R = 2,000, and DWL = 125 Qt = 70, pt = 80, R = 1,750, and DWL = 125
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