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Suppose the market demand function for ice cream is Qd = 10 - 2 P and the market supply function for ice cream is Qs = 4 P - 2, both measured in...

Suppose the market demand function for ice cream is Qd = 10 - 2P and the market supply function for ice cream is Qs = 4P - 2, both measured in millions of gallons of ice cream per year. Suppose the government imposes a $0.3 tax on each gallon of ice cream. What is the government revenue raised by the tax?



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the equilibrium condition is the point where demand equation is equal to supply... View the full answer

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First we need to find equilibrium quantity and price At... View the full answer

1 comment
  • The right answer was $1.68
    • sisnaz
    • Apr 05, 2018 at 2:57pm

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