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Let demand for wheat be QD=400-5P and supply for wheat be QS=3P when there is no tax on wheat. The government now decides to impose
Let demand for wheat be QD=400-5P and supply for wheat be QS=3P when there is no tax on wheat. The government now decides to impose a tax of $16 per unit on wheat.
What is the excess burden of this tax at the market level?
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