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Assume that the demand and the supply in a market are represented by the following equations: Q d =200-5P Q s =5P-10 The market equilibrium
Assume that the demand and the supply in a market are represented by the following equations:
Qd=200-5P
Qs=5P-10
The market equilibrium in this case will be: Price =________ ; Quantity =__________ .
If the government were to introduce an excise tax of $2 per unit of output (assessed on the supplier), what would the new equilibrium be? Price =_________ ; Quantity =__________ .
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