E202ProblemSet5.4 - new price and quantity. How much...

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a. What is the equilibrium price and quantity? Calculate and graph consumer surplus, producer surplus, and the total weekly economic surplus generated at the market equilibrium. b. Suppose a per-unit tax of $2, to be collected from sellers, is imposed on this market. Find the
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Unformatted text preview: new price and quantity. How much government revenue will this tax generate each week? Calculate and graph the direct loss in economic surplus experienced by participants in this market as a result of the tax....
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This note was uploaded on 02/20/2012 for the course ECON 202 taught by Professor Brightwell during the Spring '08 term at Texas A&M.

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