Question: Consider again worked-out problem 14.2. Suppose that starting at the initial long-run equilibrium with a price of $11.50 and 100 active firms, the government requires

Consider again worked-out problem 14.2. Suppose that starting at the initial long-run equilibrium with a price of $11.50 and 100 active firms, the government requires firms to pay a tax of $11.50 per pizza. What is the effect of the tax on the amounts paid by buyers and sellers in the short run? What is the government revenue? What is the deadweight loss? What about in the long run?

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