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Figure: The Shrimp Market Price of shrimp (per pound) $22.50 20.00 17.50 15.00 12.50 10.00 7.50 5.00 2.50 250 500 750 1,000 1,250 1,500 1,750
Figure: The Shrimp Market Price of shrimp (per pound) $22.50 20.00 17.50 15.00 12.50 10.00 7.50 5.00 2.50 250 500 750 1,000 1,250 1,500 1,750 Quantity of shrimp (in pounds) 1) If there is no tax in the market, what are the equilibrium price and quantity?(1pt) 2) Suppose the government implements a $5.00 tax on producers. Draw the associated curve shift. On the graph above. a. What is the new price received by producers? b. What is the new price paid by consumers? c. What is the producer tax incidence? d. What is the consumer tax incidence? e . What is the deadweight loss from this tax
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