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(a) What quantity will be sold in the market? (b) What price will consumers pay in the market? (c) By how much will consumer surplus

(a) What quantity will be sold in the market? (b) What price will consumers pay in the market? (c) By how much will consumer surplus change as a result of the tax? (d) By how much will the producer surplus change as a result of the tax? (e) How much revenue will the government collect from this excise tax? (f) Calculate the deadweight loss created by the tax.

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Price $120 S $90 $60 $30 D 0 1,000 2,000 3,000 Quantity

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