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Government Intervention 1. The aggregate demand and the supply curve of beers is given by: QS = 5P - 5 QP = -P +25 (a)

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Government Intervention 1. The aggregate demand and the supply curve of beers is given by: QS = 5P - 5 QP = -P +25 (a) Find the equilibrium price and quantities sold. (b) Find the producer surplus, consumer surplus and the total surplus. (c) Suppose the government wanted to increase its revenue and decided to impose a tax of 3 per unit purchased. Find the new equilibrium price and quantity sold. (d) Find the producer surplus, consumer surplus, total tax revenue, and the total surplus. (e) Find the dead-weight-loss of this taxation policy. Depict the all the surpluses and the deadweight loss of this tax policy in a schematic diagram

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