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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

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  1. 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.
    1. 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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