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The demand curve for a good is qD ( p ) = 100 p , and the supply is qS ( p ) = 20
The demand curve for a good is qD(p) = 100 p, and the supply is qS(p) = 20 + 3p. Compute the equilibrium price and quantity. Suppose that the government need to collect 308 in revenues. The government can choose between a per unit tax on t on production and a per unit tax t on consumption. Find the values of t and t. If the government wants to minimize the dead weight loss, which tax should it choose?
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