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The following market for steal is at the equilibrium E1. What are the equilibrium price P1 and quantity Q1? If The government decides to regulate
The following market for steal is at the equilibrium E1. What are the equilibrium price P1 and quantity Q1? If The government decides to regulate this market by imposing a tax of $2. What are the new equilibrium price P2 and quantity Q2? Calculate the corresponding tax revenue after the government decision and the resulting deadweight loss from the imposed tax.
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