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Consider a market with the following demand and supply functions: Dj) = max {0, 15 p} and 5&3) = 2;). a Represent the supply and
Consider a market with the following demand and supply functions: Dj) = max {0, 15 p} and 5&3) = 2;). a Represent the supply and demand curves on a graphic. Find the competitive equilibrium price and quantity. b. Compute the equilibrium price and quantity algebraically. c. Compute the total surplus realized through trade [sum ofthe consumers and the producem' surpluses). Suppose now that a quantity tax of $1 per unit is introduced. d. Compute the equilibrium demand and supply prices, m well as the new quantity being traded at equilibrium. Represent this on a new graphic. e. Compute the total surplus realized through trade [sum ofthe consumers and the producers\" surpluses, plus the total amount oftax levied)
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