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The data in the table below are for kilos of prawns. Price Quantity Demanded Quantity Supplied (before tax) Quantity Supplied (after tax) $21 255 195

The data in the table below are for kilos of prawns.

Price Quantity Demanded Quantity Supplied (before tax) Quantity Supplied (after tax)
$21 255 195
23 235 205
25 215 215
27 195 225
29 175 235
31 155 245
33 135 255

a) What is the present equilibrium price and quantity?

Equilibrium price: $..........Equilibrium quantity:......................

Suppose that the government introduces a $6 excise tax on prawns.

b) Complete the Quantity Supplied (after tax) that results.

c) What will be the new equilibrium price and quantity?

New equilibrium price: $........ New equilibrium quantity:..........

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