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Suppose the market for grass seed can be expressed as: Demand: QD = 100 - 2p Supply: QS = 3p If government imposes a $5
Suppose the market for grass seed can be expressed as:
Demand: QD = 100 - 2p
Supply: QS = 3p
If government imposes a $5 specific tax to be collected from sellers, what is the price consumers will pay? How much tax revenue is collected? What fraction is paid by sellers?
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