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Consider the following market for widgets. The government has decided to place a tax on producers of widgets equal to $3 per widget. Please use
- Consider the following market for widgets. The government has decided to place a tax on producers of widgets equal to $3 per widget. Please use the following instructions to evaluate the market for widgets before the tax and after the tax.
- On the graph on the left, please show and label the situation for the market for widgets without the tax. Be sure to label Q*, P*, consumer surplus, and producer surplus.
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