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Starting with QD = 60-10P and QS = 10P and supposing that the government imposes an excise tax of $2 per unit collected from producers,

Starting with QD = 60-10P and QS = 10P and supposing that the government imposes an excise tax of $2 per unit collected from producers, find (a) the new equilibrium price and quantity and (b) how much of the tax is actually paid by consumers and how much falls on producers.

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