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Suppose the demand for a product is given by P = 100 - 2Q. Also, the supply is given by P = 20 + 6Q. If an $8

per-unit excise tax is levied on the buyers of a good, consumer surplus is equal to

Top Answer

100 - 2Q = 20 + 6Q 80 = 8Q Q = 8 Plug in 8 for Q in one of the equations to get P. 100 - 2(8) = 84 The... View the full answer

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