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Consider a market supply and demand represented by the following: Q s = 4P - 120 and Q d = 1000 - 10P. Use this

Consider a market supply and demand represented by the following: Qs= 4P - 120 and Qd= 1000 - 10P. Use this information to answer the following questions.

  1. Calculate equilibrium price and quantity.
  2. What is the consumer surplus?
  3. If the government imposes an excise tax of $2, what would be the new equilibrium price, quantity?
  4. What would happen to the consumer surplus?

What is the answer to number 3? Also how to you get to that answer?

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