Suppose that an excise tax of 20 apiece and a sales tax of 30 apiece are imposed

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Suppose that an excise tax of 20¢ apiece and a sales tax of 30¢ apiece are imposed simultaneously. Answer again all of the questions in Exercise.

Suppose the demand curve for oranges is given by the equation

Q = −200 • P + 1,000

With quantity (Q) measured in oranges per day and price (P) measured in dollars per orange. The supply curve is given by

Q = 800 • P

Compute the equilibrium price and quantity of oranges.

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Price theory and applications

ISBN: 978-0538746458

8th edition

Authors: Steven E landsburg

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Question Posted: Jan 24, 2013 07:12 AM

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Suppose that an excise tax of 20 apiece and a sales tax of 30 apiece are imposed

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Price theory and applications

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