The market of oranges is perfectly competitive and the equilibrium price is 30. The supply function in
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The market of oranges is perfectly competitive and the equilibrium price is 30€. The supply function in the market has a positive slope and the government is considering imposing a tax of 2€ per unit. Compute the prices the orange producers will receive and the consumers will pay at the new equilibrium if the market demand is perfectly elastic. Draw an appropriate graph and explain your findings.
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