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Use the supply and demand curve diagram below to answer the following THREE questions. Assume perfect competition and consider only short run effects. If a
Use the supply and demand curve diagram below to answer the following THREE questions. Assume perfect competition and consider only short run effects. If a $6 per unit tax is introduced, how much revenue will the government raise? a) $120. b) $240. c) $300. d) $180. If a 40 unit quota is introduced, what will be the new equilibrium price? a) $8. b) $7. c) $6. d) None of the above
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