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Suppose we have a demand equation P = 100 - 2Qd and a supply equation P = 2 + 10Qs. Suppose an excise tax of

Suppose we have a demand equation P = 100 - 2Qd and a supply equation P = 2 + 10Qs.

Suppose an excise tax of $2.50 per unit is imposed. What is the quantity transacted after the tax is imposed? Do consumers or suppliers bear the greater burden of the tax? How much is the deadweight loss?

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