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Suppose that the demand for a good is described by the inverse demand function p = 10 – 3q and the supply of the good is given by the inverse supply function  p = 2 + 2 q:   Q: Suppose the government imposes a $1 per unit tax on suppliers. Now what is the price the seller will receive

- November 14, 2022 - Edwin Tunner

 Suppose that the demand for a good is described by the inverse demand function p = 10 – 3q and the supply of the good is given by the inverse supply function  p = 2 + 2 q:

 

Q: Suppose the government imposes a $1 per unit tax on suppliers. Now what is the price the seller will receive and quantity of the good in this market?

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