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market is described by the following supply and demand curves, respectively: QS=P QD=10-P where QSand QDare quantity supplied and demanded, and P is price.Now suppose
market is described by the following supply and demand curves, respectively:
QS=P
QD=10-P
where QSand QDare quantity supplied and demanded, and P is price.Now suppose the government imposes $2 tax on buyers. What is the fall in consumer surplus due to buyers leaving the market after the tax policy?
a.
0.5
b.
4.5
c.
4
d.
1
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