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One Graph Question $14 $12 $10 $8 Price $6 $4 $2 D SO 0 100 200 300 400 500 600 700 Quantity The market for

One Graph Question

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$14 $12 $10 $8 Price $6 $4 $2 D SO 0 100 200 300 400 500 600 700 Quantity The market for donuts is in a competitive equilibrium, as shown above. The government decides to impose a $4 excise tax on donut producers. After the tax is imposed what is the new price that consumers pay and the price that producers receive? Consumers P = $11 , Producers P = $7 Consumers P = $5 , Producers P = $9 Consumers P = $9 , Producers P = $5 Consumers P = $8 , Producers P = $6

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