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Suppose market demand for potatoes (in millions per year) is given by the equation QD=90-P, while the market supply equation is given by the equation
Suppose market demand for potatoes (in millions per year) is given by the equation QD=90-P, while the market supply equation is given by the equation QS=P-10.
- Calculate consumer surplus and producer surplus of this market.
- Suppose the government imposes an excise tax of $10 each on the producers. Calculate the consumer tax incidence (CTI) and producer tax incidence (PTI).
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Business A Changing World
Authors: O. C. Ferrell, Geoffrey Hirt, Linda Ferrell
10th edition
1259179397, 978-1259179396
