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hello, how did they get the equilibrium price and quantity after tax? The supply of gazebos is given by P = 2 + 0.5Q; demand
hello, how did they get the equilibrium price and quantity after tax?
The supply of gazebos is given by P = 2 + 0.5Q; demand is given by Q = 16. A specific tax of $3 per unit is subsequently imposed and that shifts the supply curve to P = 5 + 0.5Q.
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