Repeat Exercise for a 50 sales tax instead of a 50 excise tax. Suppose the demand curve

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Repeat Exercise for a 50¢ sales tax instead of a 50¢ excise tax.

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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Repeat Exercise for a 50 sales tax instead of a 50 excise tax. Suppose the demand curve

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Supply Q 800 P De...View the full answer

Price theory and applications

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