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**Unformatted text preview: **P = 100 30Q i for i = 1, , 60 where P is price, Q is quantity, and i is the representative individual. Also assume there are 60 identical firms. Each firms supply curve is given: P = 10 + 60Q j for j = 1, , 60 where j is the representative firm. 5 Final Exam: Hint (a) Derive equations for the market demand and supply curves. Calculate market equilibrium price and quantity. Show these using a carefully labelled 6 7 8 9 10 11 Final Exam: Hint (b) Now suppose the Government imposes a consumption tax of $3 per unit. Calculate the new market equilibrium price and quantity. Show these in a new diagram. 12 13 14 15 16 17...

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